Bitcoin is showing signs of buyer exhaustion under the 1D 200 EMA (exponential moving average) and bears seem to be eyeing a sell-off down to the .5 macro fib level at $34K USD.
If the bulls don’t step in at that support level, then Bitcoin could drop as far as the .618 macro fib level around $27K USD.
Pictured on the 1D BTC/USD chart below you will find both the .5 and .618 macro fib levels with two scenarios mapped out, bullish and bearish.
A bullish bounce from $34K USD would suggest that the inverse head and shoulders pattern forming is still in play.
Alternatively, a bearish breakdown from $34K USD may snowball down to $27K USD. How price behaves there will determine whether bulls still have some fight left in them or if the bears finally get their chance to make some money back after months of being squeezed.
A close up of the 4Hr BTC/USD chart attempts to clearly map out the two scenarios and what we could expect from the bulls and bears over the weekend.
As always, wait for confirmation using candle closes on support or resistance before buying and selling. It pays to have patience…
Stay tuned for the next update.
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