Why Bitcoin Is Dropping ? Big NEWS
Welcome to a new update on bitcoin as we are seeing that we are correcting and we are facing ourselves a potential area of support that we are definitely should be looking at we're going to cover that topic today .
The fact that we are looking at the price action in which we are truly seeing a drop down happening at this point is probably because of the actual caution and actual fear regarding the meeting of the fed tomorrow so the equities are actually running up but crypto is showing weakness given the fact that there is a potential weakness expected to be happening for the meeting tomorrow .
So what do we see on the price action for now is that we've had this top structure taking place we've had a beautiful rejection happening at 64k as well or 66 sorry after which the trend has become south right now we are in a crucial area of support and we've also got a very important fat meeting happening tomorrow on the markets in which the general consensus is that we're going to face more downwards price action .
After that given that we're going to have an accelerated tapering and given that we are expecting to see hikes of interest rates while as a matter of fact today the debt ceiling might be increased on the us the case that we're that the overall consensus is that we're going to expect further downwards momentum going into the event makes me wonder i truly believe that we're going to get or and i think that the actual likely scenario is that we're going to get a potential bottom on the actual event in which we're going to reverse after the event took place or around that event in which um the actual event already has been priced in .
So in case of upwards momentum in which we also know the cme futures in 2017 in which we assumed that we were going further upwards um the actual re inverse is taking place here in which the expectations are that the market is going to drop even more and the expectations are that we are in a bear market as i see more and more people becoming bearish in this structure those people were bullish.
Before and now they become bearish at support which makes me wonder as well but all the ingredients are here for a reversal based on the fact that we are seeing a shouter rumor by the news event is it going to happen i'm not sure but i think it's very likely yes the overall consensus is that we are going to see a downward spread movement happening on the markets .
So when we're looking at the price action of bitcoin um definitely it's not looking too great but i've marked the crucial area to hold here which is currently still sustaining um in which we are trying to seek ourselves for a bullish divergence and a support to be staking to be happening here um so at this point um definitely that is the case and when we're looking at uh lower time frames...
We can see that the price action is still trending south we've got lower highs we actually are looking for a lower low to be made now as well we've got this massive wick towards 41k that is most likely going to beat the bottom but at this point while we're looking at the price action bitcoin is definitely seeking for that support at 46.5 and the likelihood that we're going to drop a need to create ourselves a bullish divergence is quite significant at this point as tomorrow that meeting will be happening what other levels to watch for bitcoin at this point well we've marked some levels here right so we've marked some levels that we should be watching which um this one couldn't break at 50.6 we dropped south we lost support at 47.9 and we are now testing this one at 46.5 .
In which we are chopping around so as a matter of fact there are two scenarios the first one is that we're going to have a drop further towards 44 to 45 k in which we're creating that buddhist divergence on the four hour and we potentially might be starting one on a daily time frame too on the other hand if we crack back above 47.9 we are most likely going to have a reversal and then I'm assuming that we're going to test 50.6 and then the market is seeking for a higher low before we can start continuing the movements .
In that case this structure might become a y-cof accumulation period um in which we are going to test those levels before and this might be the spring or the test and then we're going to reverse everyone is looking at and had a shorter structure the header solder structure has a target of minus something which doesn't really make sense so that is the case for bitcoin at this point when we're looking at ethereum we've actually been seeing a rejection here at 4.1 given the fact that we have been testing support so many times we've actually dropped beneath and we are facing ourselves into the next area of support which is the area around 36 and i think we're going to have some sort of bounce and then we're done with the actual correction on ethereum so i think that we're doing fine just a small market update i'll be back later today with a second update .
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