Good morning traders,
Hope everyone has stayed safe and enjoyed the Friday/Saturday night! Since the Bitcoin price has held pretty well in this week, the market of small-cap shit coins was still highly tradable. However, we should face the reality eventually and ask the most essential question: when will the king of crypto, Bitcoin , decide to move either up or down in the near future? I’d like to share my perspective based on what I have observed on the BTC1! chart for weeks.
The recent price of Bitcoin has bored many people and is extremely difficult to predict. Some respectable traders pointed out that potential MACD hidden bearish divergence is forming on the weekly chart, which might indicate a major reversal soon. However, RSI is showing a different story; that is, no divergence is found. On the daily chart , Bitcoin is still in an uptrend and keeps forming higher lows. Another funny thing is that “Crypto Fear & Greed Index” has been ranging from 38-40 for days and the Bitcoin price still holds. These informations might indicate that Bitcoin rally hasn’t finished yet.
We may find some inspirations from the BTC1! chart, and in fact, it offers much more clear clues than the noisy BTCUSD chart. As shown in the chart, the recent move of BTC1! is quite well-defined and restricted in a rising channel. But noticeably, the Bitcoin futures price spent its most time accumulating between 9275-9820 USD. This range is marked by the purple rectangle and indicates the gap/window generated in the period from 5/8/20 to 5/11/20. Based on the gap theory, the gap could act as either a resistance or support. In this case, we could roughly define the lower bound, 9275 USD, as the ultimate support and the upper bound, 9820 USD, as the ultimate resistance. Interestingly, the lower bound aligns the 78.6% Fib retracement (9290 USD), defined from the swing high at 10670 USD to the swing low at 4210 USD, and also aligns the historic resistance/support level dating back to January 2018 (approximately 9255 USD).
Based on these observations from BTC1!, I think we should keep our eyes closely on the level of 9275 USD (more precisely, the range from 9255-9290 USD), suggested by 3 different techniques. This level is extremely strong in my humble opinion. If the daily candle closes below it, this could be a bearish sign and the reversal is imminent. If the daily candle can close above 9820 USD and hold, we shall see 10k again very soon. Another wave of bullish rally could follow.
Please like, comment and follow me if you’re interested in this idea.
Wish you have a great weekend!
HakoneDream
Hope everyone has stayed safe and enjoyed the Friday/Saturday night! Since the Bitcoin price has held pretty well in this week, the market of small-cap shit coins was still highly tradable. However, we should face the reality eventually and ask the most essential question: when will the king of crypto, Bitcoin , decide to move either up or down in the near future? I’d like to share my perspective based on what I have observed on the BTC1! chart for weeks.
The recent price of Bitcoin has bored many people and is extremely difficult to predict. Some respectable traders pointed out that potential MACD hidden bearish divergence is forming on the weekly chart, which might indicate a major reversal soon. However, RSI is showing a different story; that is, no divergence is found. On the daily chart , Bitcoin is still in an uptrend and keeps forming higher lows. Another funny thing is that “Crypto Fear & Greed Index” has been ranging from 38-40 for days and the Bitcoin price still holds. These informations might indicate that Bitcoin rally hasn’t finished yet.
We may find some inspirations from the BTC1! chart, and in fact, it offers much more clear clues than the noisy BTCUSD chart. As shown in the chart, the recent move of BTC1! is quite well-defined and restricted in a rising channel. But noticeably, the Bitcoin futures price spent its most time accumulating between 9275-9820 USD. This range is marked by the purple rectangle and indicates the gap/window generated in the period from 5/8/20 to 5/11/20. Based on the gap theory, the gap could act as either a resistance or support. In this case, we could roughly define the lower bound, 9275 USD, as the ultimate support and the upper bound, 9820 USD, as the ultimate resistance. Interestingly, the lower bound aligns the 78.6% Fib retracement (9290 USD), defined from the swing high at 10670 USD to the swing low at 4210 USD, and also aligns the historic resistance/support level dating back to January 2018 (approximately 9255 USD).
Based on these observations from BTC1!, I think we should keep our eyes closely on the level of 9275 USD (more precisely, the range from 9255-9290 USD), suggested by 3 different techniques. This level is extremely strong in my humble opinion. If the daily candle closes below it, this could be a bearish sign and the reversal is imminent. If the daily candle can close above 9820 USD and hold, we shall see 10k again very soon. Another wave of bullish rally could follow.
Please like, comment and follow me if you’re interested in this idea.
Wish you have a great weekend!
HakoneDream