Hello crytpokitties, lets have a look at the developments with BTC. As you can on the 2 hr chart BTC is in a channel moving sideways, but making steady gains over the last 24 hrs. I have highlighted the bullish divergence in yellow on the two charts and can explain this. Can you see on the price chart small yellow trend line of the current wave, it is showing uptrend. When you move to the RSI chart and map the same trend line in the same area it is showing downtrend. Therefore the two trend lines are diverting while the price is going up, v'walah bullish divergence. We have not yet dropped below or retested $6500 like last week so it a now a support that is become stronger as we go. What is coming up? We have the moderate $7250 resistance line (green target box) from last week to penetrate before the real action starts. This is where traders need to make up their mind to go long or short. If you got in at $6700-$6800 there is a nice risk to reward at that level. The probabilities of it going further are diminished but cannot be ruled out. Let me explain. If BTC has enough momentum to get through the target area it will come up against the massive resistance line established at the ATH 17th Dec 2017. This will be the make or break bull run so far this year. If it reflects back of the resistance or even the $7250 top of current trend, we will be back retesting $6500 and then $6000 very quickly, However, if it penetrates the red resistance line all hell will break loose as the algos , bots and humans all generate FOMO and the money sitting in lieu will pour in. We need to respect what that line means and if it can be conquered and get above and stay there my attitude will be strong bullish. However, lets not get ahead too far and see what BTC does in the next day. I am refraining from using EWT at this stage as the wave forms are hard to validate. However, I have tried to give you guys a simple road map of where BTC is going in the next day or two to avoid nasty surprises and position yourself to capitalise. Just to summarise it will either rebound off the target area or red resistance line or keep going up through the resistance and trigger off a massive bull run. I will be updating on my twitter if you would like to follow and like this analysis. I hope you enjoyed the analysis as much as I enjoyed making it.
Comment:
The red candle stopped right on the yellow support line I placed earlier. The bullish divergence is still in play. Sooner or later there will be a transition, collision and conjunction of the candles with the big daddy red line. A rebound is not ruled out, and making it through will be grand finale.