The previous low of 0.06 (thin dashed yellow line) has served as a psychological resistance since we broke down this price to find a support beneath the lowest fib. When price first broke this resistance (A) we saw a pump, possibly in anticipation of Bitcoin Gold -0.03% . This and the next break of resistance (B) both resulted in a consistent decline, forming a nasty falling knife pattern.
More recently price has plateaued on the 77 SMA (White line), after which a break of 0.06 (C) returned to this plateau and rebounded to break once more (D). This is much more promising for upward movement beyond these levels.
There has also been a cross of the 7 SMA (Green) over the 77 (White). This was maintained during the recent plateau and bounced when price broke 0.06.
Price should hold here around the lowest fib for enough time to provide an entry point around 0.0624, perhaps dropping to retest resistance (now support) at 0.06. Stop loss should be set below 0.056, and our target is about 30% up at around 0.082 on the 0.236 fib, before we hit the 235 SMA (purple).
More recently price has plateaued on the 77 SMA (White line), after which a break of 0.06 (C) returned to this plateau and rebounded to break once more (D). This is much more promising for upward movement beyond these levels.
There has also been a cross of the 7 SMA (Green) over the 77 (White). This was maintained during the recent plateau and bounced when price broke 0.06.
Price should hold here around the lowest fib for enough time to provide an entry point around 0.0624, perhaps dropping to retest resistance (now support) at 0.06. Stop loss should be set below 0.056, and our target is about 30% up at around 0.082 on the 0.236 fib, before we hit the 235 SMA (purple).
Comment:
For some context, this is how I chose to draw the fib retracement, and the points of interaction between the SMAs and the fib levels.
