Happy Monday and happy new week. Welcome to the first day of the next beautiful week hopefully. Let's come back to the technical analysis of bitcoin again.
Looking at the chart applied, the price of bitcoin has formed a parallel channel. Because of this parallel channel, there are some levels that may we consider as the key levels for bitcoin.
1. The first key level is at current level which price are trending at. Like what I've always anticipated on some of previous analysis, current level is having an alignment with the previous price action, median line of the channel, golden pocket and the 1000 moving average on daily time frame. With all of this confluence factors, I will expect a liquidation area of yellow will be touched during a potential choppy condition.
2. The 2nd key level is at $9121 region which is the next area of resistance if the price can breaks through current resistance level. This area however is the area of confluence between the previous price action and the 78.6% fibonacci retracement. Beside, there is high probability of this level will have an alignment with the upper line of the channel when the price has the continuation trend toward this region.
3. The 3rd key level is at around $5200 - $4900 region as the previous candle's body of the swing low candle. This area however is the area of interest of the swing trader which is waiting for opening their long position. If the price gets a rejection at current area of resistance, I do believe that the price will have a leg down to at least this area of support or even lower to the $4000 region which could have an alignment with the lower line of the channel.
These are the key levels that I will anticipate for now. I'm still staying on my current bias which is potentially bullish on a short term but still feel pessimistic for longer term. That's why I'm more leaning toward the downside for long term. Short term, we still can see a push toward the liquidation zone.
Looking at the chart applied, the price of bitcoin has formed a parallel channel. Because of this parallel channel, there are some levels that may we consider as the key levels for bitcoin.
1. The first key level is at current level which price are trending at. Like what I've always anticipated on some of previous analysis, current level is having an alignment with the previous price action, median line of the channel, golden pocket and the 1000 moving average on daily time frame. With all of this confluence factors, I will expect a liquidation area of yellow will be touched during a potential choppy condition.
2. The 2nd key level is at $9121 region which is the next area of resistance if the price can breaks through current resistance level. This area however is the area of confluence between the previous price action and the 78.6% fibonacci retracement. Beside, there is high probability of this level will have an alignment with the upper line of the channel when the price has the continuation trend toward this region.
3. The 3rd key level is at around $5200 - $4900 region as the previous candle's body of the swing low candle. This area however is the area of interest of the swing trader which is waiting for opening their long position. If the price gets a rejection at current area of resistance, I do believe that the price will have a leg down to at least this area of support or even lower to the $4000 region which could have an alignment with the lower line of the channel.
These are the key levels that I will anticipate for now. I'm still staying on my current bias which is potentially bullish on a short term but still feel pessimistic for longer term. That's why I'm more leaning toward the downside for long term. Short term, we still can see a push toward the liquidation zone.
