For a week that has the Greyscale Bitcoin dark cloud looming over its head, Bitcoin, out of a sudden turn of events, has managed to come back from the grave and is currently forcing its way back above what I believe to be significant areas of support/resistance. And although it is premature at the moment to say, Bitcoin is in my opinion confirming a buy signal IF it can hold above this $31967 price level that we are currently battling at.
A daily and preferable weekly candle close above this level could be the entry of a low risk, large size long as the price level of $31967 represents a very important mathematical level of a .236 fibonacci retracement. For me personally, it is THE level where I begin my entries for longs. And anything below this price is bearish until bulls can prove otherwise.
Now, however, bulls are proving otherwise and are attempting to push the price above our .236 fib level.
Keep in mind that this is only the little brother of a much larger .236 fib level still over our heads at around the $37500 area. This level corresponds with the all time high in bitcoin so this level in my opinion will be the gateway back into full blown bull market in Bitcoin.. but lets not get far ahead of ourselves just yet.
Bitcoin now has much work to do as the battleground and area of interest is this $31967 area on the weekly as a close above this would be a signal for a good size long with stop losses 2-3% below it (this is my own personal risk tolerance).
If price action closes above this level this week, local price targets will be as follows:
$31967
$33739
$35171
And of course just above $35171 we have our boss level at $37500 (the 2nd .236 fib).
Keep in mind that Bitcoin also still finds itself below a major downward sloping supply line that has extinguished every attempted rally since the all time high top in BTC price. This infact means that Bitcoin is still bearish UNTIL a confirmation close occurs above our 1st .236 level at minimum, but ULTIMATELY this diagonal resistance line must be broken as well.
So going forward the setup is pretty simple. To sum up, closes above $31967 makes me bullish, anything below that, I am not trading.
IF we break bullish, we must break above the orange downward sloping supply line as this will be the final hope for bears before BTC potentially squares up for a test of our 2nd .236 fib level.
Your floor and final level of support is $29104 with major resistance from the swing high at $41238.
PLZ USE ALERTS AND OR STOP LOSSES
A daily and preferable weekly candle close above this level could be the entry of a low risk, large size long as the price level of $31967 represents a very important mathematical level of a .236 fibonacci retracement. For me personally, it is THE level where I begin my entries for longs. And anything below this price is bearish until bulls can prove otherwise.
Now, however, bulls are proving otherwise and are attempting to push the price above our .236 fib level.
Keep in mind that this is only the little brother of a much larger .236 fib level still over our heads at around the $37500 area. This level corresponds with the all time high in bitcoin so this level in my opinion will be the gateway back into full blown bull market in Bitcoin.. but lets not get far ahead of ourselves just yet.
Bitcoin now has much work to do as the battleground and area of interest is this $31967 area on the weekly as a close above this would be a signal for a good size long with stop losses 2-3% below it (this is my own personal risk tolerance).
If price action closes above this level this week, local price targets will be as follows:
$31967
$33739
$35171
And of course just above $35171 we have our boss level at $37500 (the 2nd .236 fib).
Keep in mind that Bitcoin also still finds itself below a major downward sloping supply line that has extinguished every attempted rally since the all time high top in BTC price. This infact means that Bitcoin is still bearish UNTIL a confirmation close occurs above our 1st .236 level at minimum, but ULTIMATELY this diagonal resistance line must be broken as well.
So going forward the setup is pretty simple. To sum up, closes above $31967 makes me bullish, anything below that, I am not trading.
IF we break bullish, we must break above the orange downward sloping supply line as this will be the final hope for bears before BTC potentially squares up for a test of our 2nd .236 fib level.
Your floor and final level of support is $29104 with major resistance from the swing high at $41238.
PLZ USE ALERTS AND OR STOP LOSSES
