Hello crypto friends,
Bitcoin has shown strength recently breaking the 7.6K resistance and reaching the 8K level where met sell pressure from the bears. Now BTC have to cool down and gain fuel for the next impulse wave to the upside.
To claim that the breakout is legit, BTC needs to test the support line at 7.6K and break through 8K with next targets at 8.5K and 9K:
The importance of the 8K level lies not only in the psychological aspect of the round figure, but also in the fact that it is a Fibonacci retracement level of 0.382 from 10.5K to 6.4K.
Otherwise, an alternative scenario may play out, where Bitcoin just only tested upper boundary of the channel at the 8K level. And now has the potential for further downtrend:
What will happen next the price will tell.
This idea is not a financial advise, but you probably know that already ;)
Bitcoin has shown strength recently breaking the 7.6K resistance and reaching the 8K level where met sell pressure from the bears. Now BTC have to cool down and gain fuel for the next impulse wave to the upside.
To claim that the breakout is legit, BTC needs to test the support line at 7.6K and break through 8K with next targets at 8.5K and 9K:
The importance of the 8K level lies not only in the psychological aspect of the round figure, but also in the fact that it is a Fibonacci retracement level of 0.382 from 10.5K to 6.4K.
Otherwise, an alternative scenario may play out, where Bitcoin just only tested upper boundary of the channel at the 8K level. And now has the potential for further downtrend:
What will happen next the price will tell.
This idea is not a financial advise, but you probably know that already ;)
Comment:
Noticed there is a gap on CME. Its closure will perfectly coincide with the 0.382 Fib level and test of the support line (former resistance):
Comment:
Price was rejected at 8500 which is also a 0.5 Fib level and went below 8000. In order to confirm bullish trend Bitcoin has to go above that level with confirmation. In short term price can go sideways in a 7500-8000 range opening scalping opportunities for experienced traders:
Comment:
Price was rejected second time by higher boundary of the Ichimoku Cloud on daily chart. While Tenkan-Sen (Conversion Line) worked as a support and gave a nice bounce:
We can conclude that the level 8600-8700 acts as support, while the level 8250-8500 as a resistance.
Take into consideration that there is still unclosed gap on CME in the zone of 7675-7725:
History says that zones of CME gaps have to be closed not by wicks, but traded.
In short term we might see a price decline after weekend and retest of the support level. If the trend is bullish and we won't go below, then Bitcoin would have to break 8500 eventually with a confirmation.
Take into consideration that there is still unclosed gap on CME in the zone of 7675-7725:
In short term we might see a price decline after weekend and retest of the support level. If the trend is bullish and we won't go below, then Bitcoin would have to break 8500 eventually with a confirmation.
Comment:
After tonight's pump price of Bitcoin stays under a 8500-8600 resistance which is also 0.5 Fib level. To be fully bullish price have to close above that level with a daily candle.
But emerging signs of weakness like bearish divergence with price and oscillators suggest that Bitcoin can go lower for more accumulation:
But emerging signs of weakness like bearish divergence with price and oscillators suggest that Bitcoin can go lower for more accumulation:
