Hey guys and welcome to my next analysis on Bitcoin.
Where are we right now? - Bitcoin stopped close to the 0.786 fib level (57150$) and is currently consolidating between 56k and 53k, preparing its next move.
On the 1H/4H timeframes, Bitcoin forms an ascending triangle pattern - a bullish continuation pattern.
On the daily timeframe, BTC is far above the EMA Ribbons, which could be a bearish sign in the short term. In every major run-up Bitcoin back-tests the yellow 20EMA (or 21EMA) before another leg up.
What do we have to pay attention to? - If Bitcoin takes out the 0.786 fib, there won't be much upcoming resistance. We can expect a rather quick move to the 1.618 fib extension level at 87278$.
Also, we do have a big support area (marked in purple) between 51k and 49k. This area has served support and resistance several times. Additionally, the 0.382 and 0.5 fib levels of the latest pump from 29th September until today are exactly around those prices.
Another confluence is the 21EMA moving in that purple area of support.
And also, we can confirm the breakout above the yellow downwards sloping trend line in that area.
So what can we expect now? - There are two likely and one unlikely scenarios:
1. Bitcoin breaks the triangle pattern to the upside, gets rejected at the 0.786. fib level and falls back into the purple area. After that, Bitcoin is aiming to take out the 0.786 fib level and push towards a new ATH.
2. Bitcoin fails to move further to the upside and therefore does not test the fib level. We can expect a quick fall into the purple support box, testing the 21EMA as support. After that, Bitcoin moves back up again.
3. Bitcoin breaks down as mentioned in 2. and fails to hold above the 21EMA. In that rather unlikely scenario we have to re-evaluate the situation.
Of course, I'll keep you up to date. ;)
If you like my analysis, feel free to like this post and comment your thoughts. :)
Have a great day and stay safe!
Where are we right now? - Bitcoin stopped close to the 0.786 fib level (57150$) and is currently consolidating between 56k and 53k, preparing its next move.
On the 1H/4H timeframes, Bitcoin forms an ascending triangle pattern - a bullish continuation pattern.
On the daily timeframe, BTC is far above the EMA Ribbons, which could be a bearish sign in the short term. In every major run-up Bitcoin back-tests the yellow 20EMA (or 21EMA) before another leg up.
What do we have to pay attention to? - If Bitcoin takes out the 0.786 fib, there won't be much upcoming resistance. We can expect a rather quick move to the 1.618 fib extension level at 87278$.
Also, we do have a big support area (marked in purple) between 51k and 49k. This area has served support and resistance several times. Additionally, the 0.382 and 0.5 fib levels of the latest pump from 29th September until today are exactly around those prices.
Another confluence is the 21EMA moving in that purple area of support.
And also, we can confirm the breakout above the yellow downwards sloping trend line in that area.
So what can we expect now? - There are two likely and one unlikely scenarios:
1. Bitcoin breaks the triangle pattern to the upside, gets rejected at the 0.786. fib level and falls back into the purple area. After that, Bitcoin is aiming to take out the 0.786 fib level and push towards a new ATH.
2. Bitcoin fails to move further to the upside and therefore does not test the fib level. We can expect a quick fall into the purple support box, testing the 21EMA as support. After that, Bitcoin moves back up again.
3. Bitcoin breaks down as mentioned in 2. and fails to hold above the 21EMA. In that rather unlikely scenario we have to re-evaluate the situation.
Of course, I'll keep you up to date. ;)
If you like my analysis, feel free to like this post and comment your thoughts. :)
Have a great day and stay safe!