Bitcoin has reached the first significant fib extension level when measured from the previous all-time high of $19,891 made in December 2017 to the December 2018 low of $3128. Price is now testing the 127% fib extension after setting a new all-time high in price at $24,200 this morning, with the 127% fib extension resting at $24,451 and currently acting as price resistance.
The PPO indicator shows the green PPO line rising above the purple signal line, with both lines rising and trending above the 0 level. The green PPO line trending above the purple signal line indicate short-term bullish momentum, while both lines being above the 0 level indicates bullish intermediate-term momentum. Overall the PPO is indicating bullish momentum behind price.
Looking at the TDI indicator we can see the the green RSI line is above the upper purple Bollinger Band. This indicates extreme bullish momentum volatility in price and in general you want to stay long anytime the daily, weekly and/or monthly TDI's show the RSI line above the upper Bollinger Band. The TDI also shows a green background which indicates bullish momentum in the intermediate-term as well. When the bulk of the green RSI line is trending between the 40-80 levels it indicates overall bullish momentum behind price, the 40-80 levels fill green to help identify the bullish momentum trend.
While the PPO and RSI are both indicating bullish momentum behind price, Bitcoin has seen a swift run to $24k after making a new all-time high this month so a pullback should be expected. Price spiking to the 127% fib level today would be a good excuse for traders to take some profits.
The most important thing to watch going forward if price pulls back is whether or not it holds above $20k. If price falls below $20k(the previous all-time high) it would be a bearish move and likely indicate more losses ahead. If price falls to the $20k level, holds there and then starts to rise again it would be a bullish move, especially if it takes out the 127% fib level which is currently holding back price.
The PPO indicator shows the green PPO line rising above the purple signal line, with both lines rising and trending above the 0 level. The green PPO line trending above the purple signal line indicate short-term bullish momentum, while both lines being above the 0 level indicates bullish intermediate-term momentum. Overall the PPO is indicating bullish momentum behind price.
Looking at the TDI indicator we can see the the green RSI line is above the upper purple Bollinger Band. This indicates extreme bullish momentum volatility in price and in general you want to stay long anytime the daily, weekly and/or monthly TDI's show the RSI line above the upper Bollinger Band. The TDI also shows a green background which indicates bullish momentum in the intermediate-term as well. When the bulk of the green RSI line is trending between the 40-80 levels it indicates overall bullish momentum behind price, the 40-80 levels fill green to help identify the bullish momentum trend.
While the PPO and RSI are both indicating bullish momentum behind price, Bitcoin has seen a swift run to $24k after making a new all-time high this month so a pullback should be expected. Price spiking to the 127% fib level today would be a good excuse for traders to take some profits.
The most important thing to watch going forward if price pulls back is whether or not it holds above $20k. If price falls below $20k(the previous all-time high) it would be a bearish move and likely indicate more losses ahead. If price falls to the $20k level, holds there and then starts to rise again it would be a bullish move, especially if it takes out the 127% fib level which is currently holding back price.