Good morning all,
Yesterday I posted a possible scenario I can see Bitcoin following. I am just following up on that scenario and a potential for a second scenario to play out.
Yesterday it looked like we could have broke through the bear flag at the $6600 resistance level but we didn't have enough momentum to keep us above that area.
Ideally right now I would like to see us bounce off of the lower trend line support and move upwards towards the top of the channel to our next resistance around the $6800.
If we can break above the $6800 resistance level with confirmation then we could potentially move upwards towards our next resistance area at $7100.
If we cannot break above the $6800 resistance level then I am expecting a retrace to around the .382 fib level.
If we manage to retrace and hit the .382 fib level than I am anticipating a dead cat bounce to our lower support around the $5800 level.
Another possibility:
We hit the $6600 resistance level yesterday and couldn't break through and are now testing the lower trend line support.
If the lower trend line support breaks we will likely retrace to the $6100 support area before we possibly make a move back upwards.
NOTE:
These are just a couple of POTENTIAL scenarios that I could see playing out. Bitcoin right now is very indecisive and any major news (like the SEC news yesterday) can cause Bitcoin to move in either direction drastically.
This area we are currently in between 7100-5400 is an extremely volatile space and I do not recommend inexperienced traders to trade right now. Its better to sit on the sidelines and wait for confirmation in either direction.
Nobody will be 100% accurate with TA right now, so it is better to look at all the possible scenarios for you to form your own personal opinion.
Do not take any of my scenarios as financial advise.
I hope you all have a wonderful Friday and a good start to your weekend.
Happy trading
mk6dunc
Yesterday I posted a possible scenario I can see Bitcoin following. I am just following up on that scenario and a potential for a second scenario to play out.
Yesterday it looked like we could have broke through the bear flag at the $6600 resistance level but we didn't have enough momentum to keep us above that area.
Ideally right now I would like to see us bounce off of the lower trend line support and move upwards towards the top of the channel to our next resistance around the $6800.
If we can break above the $6800 resistance level with confirmation then we could potentially move upwards towards our next resistance area at $7100.
If we cannot break above the $6800 resistance level then I am expecting a retrace to around the .382 fib level.
If we manage to retrace and hit the .382 fib level than I am anticipating a dead cat bounce to our lower support around the $5800 level.
Another possibility:
We hit the $6600 resistance level yesterday and couldn't break through and are now testing the lower trend line support.
If the lower trend line support breaks we will likely retrace to the $6100 support area before we possibly make a move back upwards.
NOTE:
These are just a couple of POTENTIAL scenarios that I could see playing out. Bitcoin right now is very indecisive and any major news (like the SEC news yesterday) can cause Bitcoin to move in either direction drastically.
This area we are currently in between 7100-5400 is an extremely volatile space and I do not recommend inexperienced traders to trade right now. Its better to sit on the sidelines and wait for confirmation in either direction.
Nobody will be 100% accurate with TA right now, so it is better to look at all the possible scenarios for you to form your own personal opinion.
Do not take any of my scenarios as financial advise.
I hope you all have a wonderful Friday and a good start to your weekend.
Happy trading
mk6dunc
Comment:
It looks like we could be forming a doji morning star on the 4hr. This would be a good reversal candle to get us up to the next impulse wave.
If this 4hr candle closes below the trend line support, its possible we see 6100 next.
keep and eye on the 4hr, 6hr,12hr,and daily time frames. It is too easy to get fooled on the lower time frames.
I will be back to update as the day progresses.
Cheers
If this 4hr candle closes below the trend line support, its possible we see 6100 next.
keep and eye on the 4hr, 6hr,12hr,and daily time frames. It is too easy to get fooled on the lower time frames.
I will be back to update as the day progresses.
Cheers
Keep an eye on the 55 EMA. Right now the 55 EMA is acting as a resistance. If we can break above the 55 EMA with confirmation that will be a good spot for the bulls to push us higher.
If we hit the 55 EMA and cannot break above that resistance it will be a good sign that bears are still looking to push lower.