As we postulated in our last discussion, Bitcoin was due for another wave down, and indeed has begun on that path since. We typically look at the daily chart here, since this column only publishes once a day, but this time let’s look at the 8-hour chart:
This chart is amazing. Or at least I am amazed by it. Almost every support and resistance the asset encountered since Mid-October is visible here. Note the blue arrows highlighting just a few of the places where arcs, angles and top of squares provided S/R.
The yellow highlighted area shows where the price turned exactly at the end of the 1st square, and the green highlights where market turned at the 3rd arc.
As I am typing, the recent fall found temporary support at the 2nd arc. The question is, will it hold? Or will price fall through it? Of course we can never know for sure, but we can make educated guesses. Let’s look at a bear setup from the high: