Calls for a failed Bitcoin rally are increasing. (1H and 1D)
Good Wednesday morning, traders. Bitcoin has managed to hold support at the S1 overnight, as I mentioned yesterday it was likely to do, and appears to be attempting to push higher. A bounce from this level has the potential to be quite bullish with everyone calling for a failed rally already, but it hasn't failed...yet...which means it bears (no pun intended) paying attention to. Considering the strong drop but continued support in the red box, it may turn out that the move was a bear trap orchestrated to fill longs before a push upward.
At this point, price has exited the bull flag and we are now watching for it to move through the yellow boxes on the 1H chart. Traders should remain aware that rejection is likeliest to happen at either box, however a push above the blue pivot line should set up a move beyond $7000. The red box has become the most important to watch at this time which means a breach of $6450 has a good chance of giving price the boost it needs to move beyond the pivot. RSI is currently testing resistance while MACD and OBV are curled upward. A break below the recent swing low of $6260.10 should set up a move toward the 61.8 retracement at $6169.20. I'd like to see a stronger move up on the 1D prior to the close, so I will be watching that as well. Currently, the daily is sitting on support and setting up as a pause/potential reversal. After the large move yesterday the expectation should be for at least a temporary reprieve and move up. The key, as mentioned above, is how high price moves in doing so.
Either way, trading right now is extremely risky and the reward is very little in comparison to that risk. Traders should always be patient and wait for good entries, rather than attempt to force trades just because they're out of the market and their trigger finger is itchy.
At this point, price has exited the bull flag and we are now watching for it to move through the yellow boxes on the 1H chart. Traders should remain aware that rejection is likeliest to happen at either box, however a push above the blue pivot line should set up a move beyond $7000. The red box has become the most important to watch at this time which means a breach of $6450 has a good chance of giving price the boost it needs to move beyond the pivot. RSI is currently testing resistance while MACD and OBV are curled upward. A break below the recent swing low of $6260.10 should set up a move toward the 61.8 retracement at $6169.20. I'd like to see a stronger move up on the 1D prior to the close, so I will be watching that as well. Currently, the daily is sitting on support and setting up as a pause/potential reversal. After the large move yesterday the expectation should be for at least a temporary reprieve and move up. The key, as mentioned above, is how high price moves in doing so.
Either way, trading right now is extremely risky and the reward is very little in comparison to that risk. Traders should always be patient and wait for good entries, rather than attempt to force trades just because they're out of the market and their trigger finger is itchy.