2) When it broke support of that channel beginning of February, it plummeted in a very nasty from an ATH at 9234 sat to 4577, practically half.
3) Ever since, it’s been in a downward triangle formation where price hits the resistance line each time – and moving around levels in between.
4) We are now trading at 3483 sat, and have hit the light blue 78,6% level (note that the full 78,6% retracement level still shows more downward price potential all the way down to 2409 sat.
5) But basically, for the moment, we are trading near the triangle support ànd the Fibonacci 78,6% retracement. These are still strong support levels for the time being.
6) If we look at CCI, we see clear sell and buy signals (red/green verticals) that align with the up-and downward swings since beginning of February. We are now reaching a new “buy” signal there.
7) Looking at MACD, a similar story unfolds, and again: we are reaching a “buy” signal there.
8) I believe the next move will therefore be to i) 3862 sat (First level), and that there is some more room to ii) 4227ish or so. That is not an incredibly great return potential, but still goes from 10 to 30% in the short term.
9) After that, it will likely need one more pullback before really testing the triangle.
10) In the meantime, one can keep a close eye on the price movement from the sideline and wait for a nice (hopefully upward) break-out of this triangle.
Feel free to comment with some potential upward catalysts you deem relevant for the upcoming price movement!
PS: this is no investment / speculation / trading advice – just my 5 cents!