Here we are again looking at Bitcoin on the weekly timeframe. We can easily appreciate how bullish potential can become active again but also how a major crash is possible if nothing happens.
Resistance vs support —Good news vs bad news
Bitcoin is trading below support which opens up the market to a major flush. This is the bad part.
The good news has several points:
1) If a crash/flush were to happen now on Bitcoin, it would be short-lived. It can happen really fast and end with a chart supporting months of bullish action.
2) The week is still young. It is only Wednesday. While Bitcoin is trading below support it can recover before the week ends. A confirmation on this timeframe only comes after the session closes.
Bitcoin below $70,000?
Bitcoin is already trading at extreme levels in relation to the current bearish wave. Any touch of $70,000, $65,000 or $60,000 can lead to a strong reversal. Or the same support that is now active now holding through the week.
How long will it take?
1-2 weeks are still in the air as to what comes next. After two weeks, including this one, the picture will be 100% clear. By the time two more weeks close, we will know full well if Bitcoin will continue on a perpetual crash, forever down, or if the bullish reversal will show up.
This is also part of the good news. The lower it goes, the stronger the reversal that follows.
If Bitcoin moves below $70,000, this can open up space for not only 1-2 months of bullish action on the altcoins but 2-4 months. For Bitcoin itself, the same amount of time remains open for a relief rally. More time is needed.
Conclusion
Overall, we have to wait for the weekly close. Any additional bearish action now can be just momentary as the current ABC bearish wave has been active for four months, 120 days.
It is almost over... We are going up next.
Namaste.
✅ Trade here on $BTC
