Recently, Bitcoin retested the $18K level, which is what I said I was expecting and hoping to see. As mentioned some time ago, I pointed to this as a key deciding factor. Either the double bottom formation would be validated or rejected, simultaneously providing an indication of where the market was likely to go next. The double bottom has since been invalidated, which leads me back to my mapped-out targets. The first target was in the $18K zone, while the second target is all the way down at $13K. You can read my article from May in which I outlined these targets. I know a lot of people don’t believe that Bitcoin can go there. It’s really not that difficult at all. A lot of support in the order books under $20K is spoofing. As soon as the price action gets aggressive and begins to accelerate, these orders disappear. Many are looking to the $15K level as the next stop. The only problem with this is that there is no real support at this level.
The graph above reveals how the double bottom formation has been completely invalidated. New traders take note: when a pattern fails, it is often a case of the reverse dynamic. In other words, once there is significant clarity and confluence that a formation has failed, counter-trading the formation is the best approach. Short sellers will be looking to short this key rejection.
The Third Touch Of The $18K Level
This will most likely lead to the third visit of the $18K level. Constant revisitation of a support level causes the floor to wear down and subsequently give way. This might not be what people are wanting to hear but this is what the data is revealing, emotions aside. We may bob about in the 20K zone for a bit longer before a sudden and deep drop. However, I think it’s highly unlikely that BTC will not revisit previous lows. This is a brief update of what I am currently seeing in the charts and should not be considered investment advice. Please, conduct your own research or consult a financial advisor if need be.
My personal thoughts regarding this next move are that this is quite likely to be the worst of it. That means that if BTC finds support at $15K I will begin moving in, to some extent. I will still hold back on a portion but I believe that the $15K level will provide a reasonable entry, especially for alts. If stability is weak and $13K appears imminent, I will hold off and monitor accordingly. Thanks for the visit. Exciting times ahead!