BTC entered a contraction near Support
Intro:
This post is mainly intended to engage with investors rather than traders. Traders' comments are still appreciated, as they could provide valuable perspectives on the idea.
My idea is simply to ask a question: Can we really expect this support to hold after BTC contracts just above it?
My theory is that we could go lower in the mid-term, below the center of the contraction line, which would be beneath the support.
Notice on the chart, the White Noise is using the 50 RSI as a source on the 3D timeframe to smooth mid-long-term momentum!
Analysis:
Back in October 2023, we saw a similar setup before moving higher. BTC contracted near its 4H support, expanded above and below the support, and subsequently gave a bullish shift in momentum after breaking the support.
It makes sense that the market would shake out people speculating on short-term price movements. This exact setup—a break of support to falsely signal a bearish trend—could shake out many longs.
When drawing a Fibonacci retracement from the recent high down to the recent low with .146 as the bottom, we get a zone that could indicate the local bottom if the price were to break support.
Conclusion:
I am bullish on BTC in the long term, and I believe there is a higher chance that Q4 will be a positive period for BTC and crypto as a whole. However, I do believe that the risk of a correction is high enough that I personally wouldn't dollar cost average into BTC above the support line. I'd also personally prefer to DCA into the green zone drawn above.
Indicators used are linked below. I've made them free for everyone on TradingView, enjoy:)
This post is mainly intended to engage with investors rather than traders. Traders' comments are still appreciated, as they could provide valuable perspectives on the idea.
My idea is simply to ask a question: Can we really expect this support to hold after BTC contracts just above it?
My theory is that we could go lower in the mid-term, below the center of the contraction line, which would be beneath the support.
Notice on the chart, the White Noise is using the 50 RSI as a source on the 3D timeframe to smooth mid-long-term momentum!
Analysis:
Back in October 2023, we saw a similar setup before moving higher. BTC contracted near its 4H support, expanded above and below the support, and subsequently gave a bullish shift in momentum after breaking the support.
It makes sense that the market would shake out people speculating on short-term price movements. This exact setup—a break of support to falsely signal a bearish trend—could shake out many longs.
When drawing a Fibonacci retracement from the recent high down to the recent low with .146 as the bottom, we get a zone that could indicate the local bottom if the price were to break support.
Conclusion:
I am bullish on BTC in the long term, and I believe there is a higher chance that Q4 will be a positive period for BTC and crypto as a whole. However, I do believe that the risk of a correction is high enough that I personally wouldn't dollar cost average into BTC above the support line. I'd also personally prefer to DCA into the green zone drawn above.
Indicators used are linked below. I've made them free for everyone on TradingView, enjoy:)
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Telegram:
t.me/ikkeomarfree
I can also pass funded accounts for you!
$50,000 accounts
Just dm my Telegram @IkkeOmar
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