BTC resistance holds, candles tell us $5300 target for COINBASE:BTCUSD by TRADEPROAcademy
BTC has been on a steady drop to the downside through a lot of support zones but it has been move systematically lately and if one can read the candlestick patterns and the trend they can see that the downside is looking stronger and we may see BTC down to the $5300 or even $5000 target level.
The long wicked dojis at the resistance level that broke indicate downside opening up in the market. The last long wick doji that was formed on December 4th 2019 which is a huge indication of sell pressure coming into the market. There have now been 5 consecutive down days and the volume on the last was really strong.
IF the downside will truly open up based on a market structure we need to see a lower low. That means that the low at 6600 has to break and that would cause price to drop into the net Fib level at 6100. However, we have deducted that we may drop down to 5300 because that is where the last real cluster of price confluence had formed it is also another important Fib level.
Disclaimer: The idea presented here is for educational purposes only, this does not constitute as investment or trading advice. TRADEPRO Academy is not responsible for any market activity.