Mainly the daily 20 ema from which the breakdown at 9.2k caused a %59 drop. We also notice the purple trendline that provided support from 9.7k. The break of the purple trendline resulted the largest red candlestick. Now we see price retesting the purple trendline twice, having failed once. If price is rejected again, we can expect a +50% drop or return to the previous low at 3.77k. Historical rejections from the 20 daily ema resulted in the same behavior.
The fact that the purple trendline has been retested twice lend to more bullishness. This can be translated into less of a drop in case of rejection and the slim chance of penetration which would take price up +25%, as it happened before in the past.
This idea is solely based on static and dynamic resistances and trendlines.
The fact that the purple trendline has been retested twice lend to more bullishness. This can be translated into less of a drop in case of rejection and the slim chance of penetration which would take price up +25%, as it happened before in the past.
This idea is solely based on static and dynamic resistances and trendlines.
Comment:
rejected from resistance zone, back under purple trendline. bad.
