What has changed since the night overview on BTC?
All three downside targets have been executed on the 30-minute timeframe.
There is also a signal for a continuation of the correction on the hourly timeframe, where there are sustainable downtrend targets that have not yet been executed:
- $95,665.
- $95,266.
The target of $95,266 is right around the descending trendline from April 25, whose impulsive breakout occurred on May 1. However, in the case of a breakout, we would expect a stronger buyer reaction lower, around $94,530. Several trend supports pass there, as well as the EMA 200 of the hourly timeframe and the EMA 50 of the 4-hour timeframe.
Regarding important horizontal levels, our indicator has broken the support at $96,499. As we mentioned yesterday while the price was above, it was just a range. Now there is a breakout and a retest of the breakout. The next important level will only be $94,243, which is roughly near the mentioned $94,530.
Currently, attempts at a correction are taking place on the hourly timeframe, which were on April 24, 28, and 30. The first two ended with a partial execution, while the third was a false one.
The key support right now that will determine the upcoming weekends is the EMA 50 of the 2-hour timeframe at $95,811. It is currently being tested, and if it breaks despite already being the third potential low, there is a high probability that this will indeed start a more significant correction.
Of course, the most ideal situation for a bullish scenario right now would be to drop to $90,000 or even lower over the weekend, so that when futures trading for Bitcoin opens on the Chicago Mercantile Exchange on Monday, it can close the old gap of $91,645-$92,525 with an upward movement and then start to close the fresh gap, rising to $97,680. BUT this is the ideal scenario, which can only be counted on if the support in the range of $94,243-$94,530 is broken, with a healthy correction gathering long liquidity below the lows of April 24, 28, and 30.
By the way, a 'Evening Star' pattern has just been formed on the 12-hour timeframe, which is corrective. The recently closed candle even engulfed not two, but three previous growth candles. The pattern has been outlined on the chart. Additionally, the 'Morning Star' pattern, which was on this timeframe on April 8-9, was also outlined, sending the price on a gorgeous run from $82,000 to nearly $98,000.
