Yesterday’s scenario was almost played out. We saw the dump exactly after the reaching the local Fibonacci golden pocket – this is the magic of Fibonacci numbers. I expected $37k for the BTC this time but the market flashed the bullish signal earlier.
Let’s take a look at the RSI. It shows us the massive bullish divergence. Trust me, the bullish divergence also can be seen on the MACD chart. Moreover, the fact that the price did not fall much lower than previous local lows means that the current drop is the false breakdown. As a result the price bounce to the upside can be anticipated. The volume at the bottoms increased, it means that the large positions was accumulated at these levels.
So, I opened long trade at $39k, what can be the targets. The first strong resistance is located at the countertrend line 1. If the Bitcoin price is able to break this line the next resistance and the final target of this pump is $44k – the countertrend line 2 and Fibonacci golden pocket. After reaching this target I anticipate the hard dump below $37k.