Good morning, traders. Bitcoin printed a large bullish daily candle yesterday. As mentioned before, this doesn't guarantee a reversal is happening but it definitely adds to the case that is building for one. The pair has continued its ascent but is pausing at the descending broadening wedge resistance, as expected, from the beginning of the drop out of the $6000s. A breach of, and close above, this resistance would be significant for the pair. Somebody was serious about buying yesterday as they took out that 500+ BTC supply sitting at $4350 that I spoke of yesterday. If you were watching TensorCharts.com when it happened, you saw that it was bought and not simply removed. Price hit the red triangle target at the previous 15 minute R4 pivot around $4330 as it did so.
Looking at the 6H chart, we can see price finding resistance at the pivot and three targets based on three different patterns. The blue target is based on the Adam and Eve double bottom at ends around $4765. The red target is based on the red descending broadening wedge and ends around $4745. Finally, the green target is based on the black dashed line descending broadening wedge and is about $1442 from the point that price breaches that wedge. If price were to breach it sooner rather than later, it shows that price would likely target the $5800 area. However, if price were to retrace a bit first, and then breach the wedge's resistance, obviously the target would be lower but it would still be $1442 above the breach. I believe these patterns to be significant in that the targets of the first two then set up the third. Traders must understand that patterns are never guaranteed, but we should always provide weight to them in our analysis when they appear. Price pushing through the large wedge's resistance is, itself, the most significant move. Until price actually moves out of the large wedge, we should look for support on any retracement at $4100 and the yellow zone that holds the lows from a few days back, as well as the lower yellow zone if price happens to fall further. This becomes more likely if price falls through the bottom of the 15 minute blue channel. Specifically, I would most likely be looking at the $3850-$4000 area for a bounce with the 15 minute S1 pivot located at $3875.
The 15 minute chart shows price traveling within a well defined ascending blue channel. Price has recently bounced off channel support, and targeting the R2 pivot on this TF would put it at the top of the channel as well as the green and red target levels. With room to run on the 15 minute RSI, MACD curling up for a bullish cross after printing bullish histogram divergence during that channel bounce, and OBV continuing to rise this seems like the most likely avenue for price movement. Doing so should then likely see price finally retracing, but since those targets take price out of the large wedge, my expectation at this time would be to see that wedge's resistance/top of the black TR act as support on that retrace. The top of the black TR on the 6H chart would be a 50% retrace from those expected targets. The blue line gives you an idea of the general movement I would expect if the large wedge is breached soon. This could all change when/if that breach happens, depending on volume and price action.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something nice for someone today which could be as simple as sharing a nice word with them. You just might change their day or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
Looking at the 6H chart, we can see price finding resistance at the pivot and three targets based on three different patterns. The blue target is based on the Adam and Eve double bottom at ends around $4765. The red target is based on the red descending broadening wedge and ends around $4745. Finally, the green target is based on the black dashed line descending broadening wedge and is about $1442 from the point that price breaches that wedge. If price were to breach it sooner rather than later, it shows that price would likely target the $5800 area. However, if price were to retrace a bit first, and then breach the wedge's resistance, obviously the target would be lower but it would still be $1442 above the breach. I believe these patterns to be significant in that the targets of the first two then set up the third. Traders must understand that patterns are never guaranteed, but we should always provide weight to them in our analysis when they appear. Price pushing through the large wedge's resistance is, itself, the most significant move. Until price actually moves out of the large wedge, we should look for support on any retracement at $4100 and the yellow zone that holds the lows from a few days back, as well as the lower yellow zone if price happens to fall further. This becomes more likely if price falls through the bottom of the 15 minute blue channel. Specifically, I would most likely be looking at the $3850-$4000 area for a bounce with the 15 minute S1 pivot located at $3875.
The 15 minute chart shows price traveling within a well defined ascending blue channel. Price has recently bounced off channel support, and targeting the R2 pivot on this TF would put it at the top of the channel as well as the green and red target levels. With room to run on the 15 minute RSI, MACD curling up for a bullish cross after printing bullish histogram divergence during that channel bounce, and OBV continuing to rise this seems like the most likely avenue for price movement. Doing so should then likely see price finally retracing, but since those targets take price out of the large wedge, my expectation at this time would be to see that wedge's resistance/top of the black TR act as support on that retrace. The top of the black TR on the 6H chart would be a 50% retrace from those expected targets. The blue line gives you an idea of the general movement I would expect if the large wedge is breached soon. This could all change when/if that breach happens, depending on volume and price action.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something nice for someone today which could be as simple as sharing a nice word with them. You just might change their day or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.