Back after a nice break. I have been working on fund management commitments and any fund manager on this site knows that January is the busiest for a fund manager and I think I've been around the more times than you've had breakfasts this last month so I apologize for not finding time to update you guys!
Anyway onto the analysis!
As it stands, Bitcoin sits nicely on a long term side-wards support line. The candles at the level do look relatively weak but they are Doji candles proving indecision here so they're not to be taken for granted. The situation can still go either way from here.
There is also an above side-wards resistance line holding price down, so price is currently in a juncture and has to go one way or the other.
If price breaks ABOVE the side-wards resistance I see a move to at least 3770 (Coinciding with the 200 major moving average resistance) before correcting to the downside, retesting and going higher once again.
If price breaks below the side-wards support line at 3450 then it is extremely likely that price will hit the 3 wave extension move and hit around 3210 before it bounces back to the upside again, probably using the previous side-wards support as a resistance giving room for a possible down move.
Bear in mind, that the move might not go immediately. It might move around in the flag structure before the move actually breaks out. Also bear in mind that if it breaks below the flag we should be considering invalidating this trade altogether and looking for something better in the near future.
Where do YOU think price is headed? Leave a comment with a chart and let's share our thoughts!
I will be providing live updates if this analysis receives sufficient attention!
Anyway onto the analysis!
As it stands, Bitcoin sits nicely on a long term side-wards support line. The candles at the level do look relatively weak but they are Doji candles proving indecision here so they're not to be taken for granted. The situation can still go either way from here.
There is also an above side-wards resistance line holding price down, so price is currently in a juncture and has to go one way or the other.
If price breaks ABOVE the side-wards resistance I see a move to at least 3770 (Coinciding with the 200 major moving average resistance) before correcting to the downside, retesting and going higher once again.
If price breaks below the side-wards support line at 3450 then it is extremely likely that price will hit the 3 wave extension move and hit around 3210 before it bounces back to the upside again, probably using the previous side-wards support as a resistance giving room for a possible down move.
Bear in mind, that the move might not go immediately. It might move around in the flag structure before the move actually breaks out. Also bear in mind that if it breaks below the flag we should be considering invalidating this trade altogether and looking for something better in the near future.
Where do YOU think price is headed? Leave a comment with a chart and let's share our thoughts!
I will be providing live updates if this analysis receives sufficient attention!