After my last idea, where the Morning Star was the momentum indicator on the Daily chart, the price has made some nice movements upwards and it starting to reach one of a pretty strong resistance area around $4,200.
Bitcoin price has climbed upwards inside the ascending channel since 8. February. The channel has one "fake out" which includes that huge manipulation candle downwards but overall it has climbed steadily. Pretty nice consistency from buyers and now, we have 6 Weekly candles closed on the plus side. Usually, consistency is a great sign in the crypto-world - it allows to get FOMO players into the playground, etc.
Okay, let's talk about the resistance area which is around $4,200 and which is the major obstacle to reach into the higher levels.
Again, one of the resistance criteria is the trendline. Currently, the trendline cannot be so strong because the second touch is the manipulation high (24. February) which is not the perfect point but still, it is important to remark this because this is almost the last down-trendline, here, in the bottom.
The second indication comes from the channel upper trendline. As you see on the chart, the channel upper trendline has held the price multiple times. Multiple times it has worked as a resistance level, so as now, and it makes a crossing area with the prementioned trendline.
The third criterion is the recently worked resistance levels. Those highs have been mid-term higher highs and it plays a significant role in the next movements. If the price can crack those levels then it has made new mid-term higher high and this is a really good indication especially after we have cracked all the down-trendlines from the bottom.
Definitely, the price can't beat this area easily, it needs a lot of buying power and if we watch those last Weekly candles then there is a possibility that the price may get it but let's see what we get from the next days.
We just need(!) that power which guides us above $4,200 or this 6 Weeks consistency collapse and it will collapse pretty heavily. First indications about collapse would be a Daily bearish candlestick pattern on the current area, the second one would be a 4H candle close below the channel middle trendline (light-red area) and the third one would a 4H candle close below the channel(red area). This channel could be also a Bear Flag but I can't count it like this because of the manipulation which was 20-24 February but one thing is sure, if the higher timeframe candle gets a close below of it then it could be a pretty strong bearish confirmation.
SUMMARY: I wanted to warn you and you should keep an eye on the mentioned resistance area around $4,200. We might get a correction downwards but CURRENTLY, from a price action perspective, not a single sign that this may occur. I will follow this area very carefully and if there should be a sign then I'll make an update!
Please, take a second and support my idea post by hitting the "LIKE", it is my only fee from You!
Have a nice day,
Best regards!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Previous analysis:
Bitcoin price has climbed upwards inside the ascending channel since 8. February. The channel has one "fake out" which includes that huge manipulation candle downwards but overall it has climbed steadily. Pretty nice consistency from buyers and now, we have 6 Weekly candles closed on the plus side. Usually, consistency is a great sign in the crypto-world - it allows to get FOMO players into the playground, etc.
Okay, let's talk about the resistance area which is around $4,200 and which is the major obstacle to reach into the higher levels.
Again, one of the resistance criteria is the trendline. Currently, the trendline cannot be so strong because the second touch is the manipulation high (24. February) which is not the perfect point but still, it is important to remark this because this is almost the last down-trendline, here, in the bottom.
The second indication comes from the channel upper trendline. As you see on the chart, the channel upper trendline has held the price multiple times. Multiple times it has worked as a resistance level, so as now, and it makes a crossing area with the prementioned trendline.
The third criterion is the recently worked resistance levels. Those highs have been mid-term higher highs and it plays a significant role in the next movements. If the price can crack those levels then it has made new mid-term higher high and this is a really good indication especially after we have cracked all the down-trendlines from the bottom.
Definitely, the price can't beat this area easily, it needs a lot of buying power and if we watch those last Weekly candles then there is a possibility that the price may get it but let's see what we get from the next days.
We just need(!) that power which guides us above $4,200 or this 6 Weeks consistency collapse and it will collapse pretty heavily. First indications about collapse would be a Daily bearish candlestick pattern on the current area, the second one would be a 4H candle close below the channel middle trendline (light-red area) and the third one would a 4H candle close below the channel(red area). This channel could be also a Bear Flag but I can't count it like this because of the manipulation which was 20-24 February but one thing is sure, if the higher timeframe candle gets a close below of it then it could be a pretty strong bearish confirmation.
SUMMARY: I wanted to warn you and you should keep an eye on the mentioned resistance area around $4,200. We might get a correction downwards but CURRENTLY, from a price action perspective, not a single sign that this may occur. I will follow this area very carefully and if there should be a sign then I'll make an update!
Please, take a second and support my idea post by hitting the "LIKE", it is my only fee from You!
Have a nice day,
Best regards!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Previous analysis:
Comment:
A major short-term target is reached!
Comment:
"CURRENTLY, from a price action perspective, not a single sign (bearish) that this may occur."
That what it means when You don't see any single bearish sign! ;)
From a technical aspect, the major indication was the Morning Star in last week when it made a breakout above the trendline which has worked since 5. May 2018 as resistance -read about it here:
That move was bigger than expected but it is still - sweeeet! :)
Regards!
From a technical aspect, the major indication was the Morning Star in last week when it made a breakout above the trendline which has worked since 5. May 2018 as resistance -read about it here:
Regards!
Comment:
NEW analysis, ideas after the pump:
Regards!
