BTC continues to create the potential harmonic pattern we envisioned in yesterday’s analysis. This potential pattern is still relevant and BTC continues its short-term declining trend. But where are the support zones and the nearest targets of the main cryptocurrency?
BTC creates the last descending leg CD within the potential harmonic pattern that arises after the closing of the growing long-term wedge. The rising wedge represented an increase in the price of the main cryptocurrency from $ 29,000 to $ 50,500. The $ 50,500 level is a resistant level, and it is at this point that the fifth leg of this wedge was completed.
Subsequently, we can observe the harmonic pattern, which target is a minimum of $ 46,000 and a maximum of $ 44,700. The $ 46,000 level represents the length of the last leg of the CD in the same size as the leg AB. It would be created within the harmonic AB = CD. The second target is at the level of 88.6% leg XA retracement at $ 44,700. If the price does not respect this support either, the reverse harmonic will not be valid.
At the same time, we also follow the target of the mentioned growing wedge, which is superior to harmonic in terms of time. This support is at the level of the first target of 38.2% retracement of the whole wedge at the value $ 42,500. The last key support is on the level $ 41,000 and the price should not fall below this level in the current correction. This level separates the accumulation zone from the growing trend.
Except supports we have to watch too sharp decline in volumes which may result in a reduction in the proportion of major cryptocurrency. Such volumes are not the rule for every altcoin.