Hello all, here we come with another update about bitcoin, this time I want to give highlight on the daily time frame.
Looking at the chart, we can see that current bullish pressure has brought the price to pass the upper line of the channel which became a very strong resistance for bitcoin and moved align with the 200 MA which acts as a dynamic resistance too. But, after the price broke out of current bearish channel, we can see that in near future, the price will face another strong resistance which previously were a broken support. Will it breaks current resistance too?
To be honest, It's really difficult to predict whether the price will breaks this resistance or not considering with current moves of bitcoin, the bulls is in full power of current market. Although the potential of hidden bearish divergence on RSI is still in play, we must remember that this divergence could be easily invalidated when the price can breaks out of the previous swing high which is around $10400. On the other hand, the RSI hasn't entered the overbought region yet, which indicates there are still a lot of room from the bulls. The MACD, especially in the histogram has already re entered the positive side again.
With this current condition and some mixed signals, I prefer to stay away from the market and wait until I get more confirmations and confluence reasons to get in traction again. There is still a possibility of the price to touch $9550 - $9700 region as a strong resistance but longing at current condition is not recommended. I'll wait the chance of shorting the market whenever I see any sign of rejection or buy the dip as an action of retesting the previous broken resistance.
Looking at the chart, we can see that current bullish pressure has brought the price to pass the upper line of the channel which became a very strong resistance for bitcoin and moved align with the 200 MA which acts as a dynamic resistance too. But, after the price broke out of current bearish channel, we can see that in near future, the price will face another strong resistance which previously were a broken support. Will it breaks current resistance too?
To be honest, It's really difficult to predict whether the price will breaks this resistance or not considering with current moves of bitcoin, the bulls is in full power of current market. Although the potential of hidden bearish divergence on RSI is still in play, we must remember that this divergence could be easily invalidated when the price can breaks out of the previous swing high which is around $10400. On the other hand, the RSI hasn't entered the overbought region yet, which indicates there are still a lot of room from the bulls. The MACD, especially in the histogram has already re entered the positive side again.
With this current condition and some mixed signals, I prefer to stay away from the market and wait until I get more confirmations and confluence reasons to get in traction again. There is still a possibility of the price to touch $9550 - $9700 region as a strong resistance but longing at current condition is not recommended. I'll wait the chance of shorting the market whenever I see any sign of rejection or buy the dip as an action of retesting the previous broken resistance.
