Hello everyone!

This is my first short ( Bitcoin -0.36% ) market analysis.

(I think everyone has heard about the "6th theory", it's a bit based on that)

My scenario:

Bitcoin -0.98% will go down to 7,200$ levels, where we can find the support. After that we will see a huge jump up to 8,100-8,200$ levels (Fib 0.786). We will face some resistance there, so I expect is to retrace a bit down to 7,700-7,800$ levels. As you can see, I have drawn a green trend line there, that indicates a support.
I'm basing that support line on the previous support line, which is at the same level. If we look back to the last BTC -0.98% pump, we can see that we went up, tried to break it, and after a day we broke it and held that level. From there we went up. We actually tested that support level for about 2-3 times.

(That's what I'm basing the green support level on)

So when we bounce from it, we will break the 8,100$-8,200$ levels (0.786 fib) and go up to the next Fib level, which is at around 8,500$ (0.618 Fib).
That's another resistance level which I think with this sentiment, we will be able to pow through it and go up to the 8,800$ (0.5 Fib) but then go down, possibly retest the 0.786 level or if there's volume maybe, just maybe even 8,500$ (0.618 Fib).

Now, here is my logic which we should remember:
1) The 6th theory. Basically, the theory goes that on every 6th of every months the way Bitcoin -0.98% goes (up or down) changes. If this is true, then we should see a spike, up.
2) If we go down to lower 7K$ levels, it's good. Why? Because if we start from there, we will start "fresh". That's a big support line now for Bitcoin -0.98% , and from there up (lower 7K$ levels) we will go up with more strength and better sentiment.
3) The MACD is high and it needs to come down, that's why I think we will go down to lower 7K$ levels, and we have seen BTC's RSI also that low, so that's not a problem. Which will mean more buy power and again, stronger push.
(Low RSI , Stoch RSI and MACD )
4) We are making lower lows. Notice how the low few months ago was just below 6,000$ level then 6,400$ and now around 7,000$. this means we are going up slowly but surely and are building up a good base. And so I think it's not that likely that we go below 7,000$.

Or we might not go back to lower 7K$ levels and just from this mid 7K$ level go up, which is also a possibility but I prefer that we do go back to lower 7K$ levels. Then we would have a better base and more momentum.

Thanks for reading my technical analysis , hope you enjoyed.

If you liked it please vote it up. If you agree or disagree let me know in the comments down below!

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