BTCUSDT
has been making some fantastic moves to the upside recently and it’s fantastic to see that it is gaining and maintaining that upside traction. Recently on the 4hr & 8hr charts we’ve been working a zone marked by support at $43.7k and resistance in the $46.5 - $46.8 area. Setup #1 - The Short
If BTC fails to break through the resistance zone again we can assume that short term it is headed down to recharge. There is an upper trend line of the descending channel that we’ll have to watch out for as this may play as a dynamic support, but the top of this resistance aligns with the 1 fib of the larger fractal and with the baseline of the ascending trend intersecting the 0.786 fib we can make the assumption that this may be the target. An estimate - using the lower edge of resistance as the top - would have this also closely match up with a full 0.618 retrace of the local fractal.
Setup #2 - The Long
Breaking through resistance here leaves BTC with almost a clear path up to 60k. We don’t have many established resistance zones out side of the 59-60k area at this point. I do not think it’s safe to assume it will be a direct flight though and that we’ll see a bumpy road along the way. Breaking above the 1 fib line of this fractal sends BTC right into the 0.382 of the ascending channels lower end. If we can keep up momentum it is possible that we could bounce off of the 0.618 of the same lower area before a slight retracement and heading up further.
A few points worth mentioning:
- Momentum divergence is looking to possibly flip bullish on the 4hr chart at the time of writing.
- Although on the mid-high end, RSI is not oversold on the 4hr or 8hr charts currently
* This Content is for informational purposes only. You should not construe any such information or other material as investment, financial, or other advice.
Trade active:
The Short got picked up as BTC pulled back from resistance
Comment:
Not much movement as of yet, BTC still seems to be fighting the resistance above and making a final decision on direciton
Comment:
There may be a possible head and shoulders forming on the 4hr chart. Will wait to see further confirmation of the pattern or invalidation.
Trade closed: stop reached