Bitcoin Ready to Bounce - Key Levels to Watch
After a couple days of pullback, the RSI on the 1hr chart has fully gone from the high extreme to the low end so a from bounce here is likely. However, the momentum is still in favor of the bears and the EMA's continue to point down. On a bounce from here, there are two resistance levels to watch. First is the 6474 level and then 6520.
Looking at the fibonacci analysis, this retracement was deeper than expected but has so far held the 618 fib level. It would have made for a much more bullish look if the retracment held at the 382 level which was at 6474 on this chart. For now, today's lows need to hold so expect the bulls to put a fight. The next hurdles will be to build a new support level and then overcome the neat-term resistance levels.
Looking at the fibonacci analysis, this retracement was deeper than expected but has so far held the 618 fib level. It would have made for a much more bullish look if the retracment held at the 382 level which was at 6474 on this chart. For now, today's lows need to hold so expect the bulls to put a fight. The next hurdles will be to build a new support level and then overcome the neat-term resistance levels.
Comment:
The good news is that the 618 level held and we saw prices bounce from the expected levels. The bad news is that they have only bounced into the first target at 6474 and are still below key moving averages on the 4hr chart. Look out for a possible re-test of the lows. A small double bottom at this zone would build support and lead to more of a bullish outlook.
