Type:
Bearish Drop
Key Levels:
Resistance: 20695
Pivot: 19390
Support: 18495
Preferred Case:
On the H4, with price breaking out of an ascending channel and moving below an ichimoku indicator, we have a bearish bias that price will drop to pivot at 19390 where the swing low support and 127.2% fibonacci extension are. Should price break pivot structure, we would expect bearish momentum to carry price to 1st support at 18495 where the swing low support, -61.8% fibonacci expansion and 78.6% fibonacci projection are.
Alternative Scenario:
Alternatively, price could rise to 1st resistance at 20695 where the pullback resistance, 100% fibonacci projection and 23.6% fibonacci retracement are.
Fundamentals:
After Fed Chair Powell reiterated that the Fed will tighten policy to bring down inflation , we have a bearish view on Bitcoin .
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.