The correction of BTC after the night dump still does not look completed.
Straight to short conclusions:
- To complete the correction, it is necessary to secure above $94,602.
- To return to growth, we need to absorb the fall and move above $95,748.
- To continue the correction, we need to stay below $94,602 and secure below the global trend line from the highs of the previous cycle, which is currently at $93,975.
All marker levels are very close.
ACCORDING TO THE ANALYSIS. For the night review, we have this update on the two key timeframes for now:
1. On the 30-minute timeframe, the price showed a bounce from the level of $93,514 early in the morning, through a strong signal of a potential low. After bouncing from the level of $94,825, removing liquidity above the level of the first bounce, the price goes down after marking a potential high. The key point is falling below the 0.5 level of Fibonacci of this night impulse.
As long as the price is below this level, which is $94,602 - we are waiting for a move down today. At least for the formation of a 'Double Bottom' or a 'Dragon'. And in general - remember that we have a gap on CME at the bottom of $91,645-$92,525.
In any case, for now, we have a trend line from the level of $95,748, from which the collapse began. If we break it and secure above without a significant decline from the current levels, the scenario with these patterns is canceled. If we break it later after a new low, we will see an attempt of the 'Dragon' with targets of $94,825 and $95,748.
2. On the 4-hour timeframe, the first of two targets for decline according to our indicator, $94,760, has been achieved; the second is $92,825.
During the night, three marks of potential lows were formed, the second candle has a good bullish shadow from below, BUT there is a problem for further growth - the price remains below the EMA 50 of this timeframe. It is currently at $94,889. As long as the price closes below with the candle's shadow, there is a big risk for bulls to see movement down. A logical target for such a decline would be the trend line from August 5 of last year, indicated by the dotted line. Near which the EMA 200 of the 4-hour timeframe passes. Currently, these supports are in the range of $90,155-$90,607. A move to the area of $87,000-$88,000 still remains logical and preferable before continuing to grow. But there are currently no confident signals that the price will reach there.
In general, we want to draw attention to the fact that the night dump squeeze broke but sustained the global trend line from the highs of the previous cycle, also indicated by the dotted line. In the 4-hour timeframe chart, we indicated that it has been acting as support since April 28. Breaks occurred on April 28 and April 30, but so far this support holds. Only breaking it and securing below can currently provide a stronger correction.
Well, even if the price goes to the area of $87,000-$88,000 in the coming days, this does not cancel and does not particularly delay the signal of an uptrend for #BTC on the 3-day timeframe. A return of the price to a stable uptrend on the 30-minute and higher timeframes will be considered the start of the implementation of this signal.
