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The second Fibo shows that we are exactly in the middle of an important range between level 0.786 and 0.5. Level 0.786 matches with an important support/resistance level represented by the light blue thick horizontal line.
I see support at 8500$ level, where Kumo becomes horizontal and the previous (and bigger) Fibo has its 0.5 Level.
What I consider more probable to happen is the following: Bitcoin going up towards the upper limit of the Kumo (area 9240$): breaking it, may prepare a run towards 9416$, otherwise we can assist to a bounce back: at first at the base line of Kumo and then we may aim to the support levels of second Fibo, at 8500$.
Keep in mind that 8500$ is a strong resistance, so what happened the past days may be just the first attempt to break it downwards.
On the 4H I see some signs of possible retracement with a bearish RSI and the price at the upper Kumo level.
Volatility is knocking on the support, and if it will resist for a couple of days we will see an increase in volatility in within the next week.
What am I going to do?
If Bitcoin breaks 9250$ area consistently (with volumes and candle body) I will be long
If Bitcoin breaks 8900$ area consistently (with volumes and candle body) I will be short
The second Fibo shows that we are exactly in the middle of an important range between level 0.786 and 0.5. Level 0.786 matches with an important support/resistance level represented by the light blue thick horizontal line.
I see support at 8500$ level, where Kumo becomes horizontal and the previous (and bigger) Fibo has its 0.5 Level.
What I consider more probable to happen is the following: Bitcoin going up towards the upper limit of the Kumo (area 9240$): breaking it, may prepare a run towards 9416$, otherwise we can assist to a bounce back: at first at the base line of Kumo and then we may aim to the support levels of second Fibo, at 8500$.
Keep in mind that 8500$ is a strong resistance, so what happened the past days may be just the first attempt to break it downwards.
On the 4H I see some signs of possible retracement with a bearish RSI and the price at the upper Kumo level.
Volatility is knocking on the support, and if it will resist for a couple of days we will see an increase in volatility in within the next week.
What am I going to do?
If Bitcoin breaks 9250$ area consistently (with volumes and candle body) I will be long
If Bitcoin breaks 8900$ area consistently (with volumes and candle body) I will be short
Increase in volatility for the upcoming week (even I would not be surpised if it will happen in the weekend) due to volumes and ATR.
So, I think that this is even more a no-trade zone, until the price will reach previous target I mentioned