Bitcoin has finally started the correction we've been talking about for days. The CME-GAP (stock exchanges closed at the weekend, creating a GAP) was closed, so there is less uncertainty.
Right now we're trading around $40,700 and we've seen a small bounce at the 200-SMA (last 200 moving averages/purple). The RSI is in an oversold territory.
Directly below us is the monthly support P, which we have not quite reached. Now it will be interesting to know whether this is already the bottom for Bitcoin or whether we will go one level lower.
At the moment I see two possibilities for the coming weekend. The first possibility would be that we could first see a recovery to around USD 43,000 and start another wave of corrections from here.
If we fail to bottom here now, the next step would be to drop towards $37,700. Here lies the golden pocket (0.618 – 0.65 Fib. retracement level) of the upmove.
A retest of this zone would also mean a higher low and would be considered bullish. However, we are not allowed to go any deeper in order not to break the structure. Before that, we still have support at around $39,000. It's going to be an interesting weekend.
Ethereum has held up slightly better than Bitcoin. Here we are still directly at the 200-SMA, which initially serves as support. This is also the neckline of our double top chart pattern.
If Ethereum does not bottom out here, the next strong support would be in the region around USD 2,600. The golden pocket of the up move is also located here and could be used as support.
This would also be the price target of the bearish chart pattern. Nevertheless, for this Bitcoin would also have to advance into lower regions, so all eyes are still on Bitcoin before we see lower prices for the Altcoins.
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