With slumps such as the most recent one, it is always extremely difficult to pinpoint the exact time of occurrence. Let alone on Bitcoin, for which it is typical that price falls suddenly within just a few hours. However, once it happens, it goes “all-in” and the trader has almost no time to react. It is therefore very difficult to try to get out of the market just before all this happens.
The bull market on daily and weekly charts
Right from the beginning, I have to mention that I think that the bull market will continue and that this slump is just a classic September correction. I think we will see a new ATH later this year and that we can easily exceed the $ 100,000 mark this year. I dare to say that this whole decline on BTC is a mere correction that could end in a while. But let’s take a look at daily and weekly charts.
On the weekly chart, we tested the EMA21 level, which is key for the continuation of the bull market. This was also the case in 2016 and 2017 when we were testing it almost on a regular basis. A similar situation happened last year. At that time, Bitcoin has tested EMA21 at $ 10,000 for the last time in September, and then rose steadily to its ATH, $ 64,000. So this situation seems to be repeating itself and I consider maintaining this level as essential for the next bull market. Of course, the wick can easily go lower on the weekly chart, but the body of the candle should adhere to the EMA21 level which is currently at $ 43,213. This is the level I will be monitoring at the end of the week.
So everything is clear on the weekly chart. But what about the daily one?
On the daily chart, I see the level of $ 43,487 - 40,604 as basic support. In terms of daily charts, it would be ideal if we could stay above $ 40,000. If we accidentally got below this level, the fall would be stronger and would destroy the current structure. We would not want that to happen. So this level is absolutely crucial for us.
Now, we have to wait for Bitcoin to move. This cryptocurrency did not have a typical correction rather than a clean dump that lasted a few hours. So let’s give the charts some time to get back on their feet.