Bitcoin Weakens Further
What appeared to give us hope on Sunday has turned out to sorely disappoint as Bitcoin’s weakness has persisted. It appears to be establishing a range between $8.9K and $9.3K, and has just now broken down from lower bound of this range at to $8.7K. It appears to be considering pressing further to lower levels in the $8K handle.
Kovach Momentum Indicators are now bearish on all levels. The only silver lining appears to be hope for the proverbial ‘dead cat bounce’ which Sunday’s candle appears to have offered. At this point, BTC seems poised to test the lower bound of the KRI once more on day charts. On the 30-minute chart, it is currently pressing it hard, and will likely come up for air, if but for a moment.
Elliott Wave analysis seems to suggest we are definitely in a corrective phase. Any semblance of bull momentum seems to be a bull correction within the bear segment (recall that Elliott Waves are fractal in nature). Eventually, we should enter wave 3. As a reminder, to confirm wave 3, we must break relative highs at $11.8K.
BTC seems to have attempted to establish a range between $8.9K and $9.3K. It continues to weaken, and the next major level is $8.6K, then $8.5K. If momentum reignites, we $9.7K and $10.2K on the upside. After $10.2K, we will find resistance at $10.4K, $10.6K, $10.8K, and $11K, where BTC held a range period before all this.
CONCLUSION – Although Bitcoin did appear to be forming a new range, it seems to be very comfortable in the $8K handle, which seems to suggest that it will test further levels below. Investors would be wise to sit back and see what the market has in store, though levels from below include $8.6K and $8.5K. From above, we have the upper bound of the range at $9.3K then $9.7K and $10.2K. Again, it seems that BTC will test lower levels rather than higher levels at this point.