Bitcoin made two breakout attempts recently. The second breakout failed and this failure is indicative of more downside in the coming days.
Bitcoin CME Futures Chart dated 27 Nov 2021
Supports that are well on target are just 6 to 8% away and lie close to 49k to 50k. Strong support of rising 200ma is well in sight. This range seems like a good support zone. The confluence of the trend line support and moving average may well lead to a short-term bounce from this lower range up to 56k.
But I truly wonder if the support zone near 50k is going to hold for long. To me, a high probability of 40k exists, yet that can only become likely if the support range of 49k to 52k give away
Why does 40k seem a fair probability?
Generally, two quick attempts at the upward breakout have led to selling pressure. Often it’s been seen that if a quick second breakout fails, such failure may very likely to lead to a strong move in the opposite direction of the breakout.
With that being said, let’s see how the price action shapes out in the coming weeks ahead.
All Targets Achieved, 26% in just 29 days
Update as on 12th Jan 2022
Bitcoin CME Futures Chart dated 12 Jan 2022
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