1. levels inside the blue box:
- 38% retracement level: pulled from the 2018 May high to the 2018 low point.
- 61.8% golden ratio: pulled from the 2018 September high to the 2018 low point.
Those levels matching with each other and those retracement levels should act as pretty strong resistance levels.
2. Orange lines just below the $5,800 are the major support levels from the past year but now, they should start to work as resistance levels and again, they are on the blue box.
3. The upward channel upper (blue line) third touch is exactly in this blue area. Individually it is not the tradeable criterion but again, it is on the blue box where those all comes together in one area and together they can make some impact on the price.
4. Slight Divergence on the 4H but also on the 1H, compared with the first higher high on the graph.
5. Fibonacci extensions
6. Some sloppy chart patterns target area is the blue box - a breakout from the smaller and a breakout from a bit sloppy Inverted targets.
7. Altcoins are on the plus side but not so deep. They reacted to this move but too slowly and this could be a little sign that only BTC gets "pumped".
So, we have three major criteria and 4 a bit subjective criteria which support that area, that blue box area at $5,700-$5,850. If the price reaches into to the mentioned box, then look at altcoins, if they are still stable (not on the deep plus side) then it would be another confirmation which will drive the price back downwards.
If you are on the short-term long position then this area should be definitely the place where you have to consider to take some profits because the resistance is pretty strong. If the price reaches into the blue box, then I start to make more frequent updates and maybe we can catch some pattern to get more confirmations.
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*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Altcoins are still on the minus side so, let's see the setup is still valid.
If it starts to go then the rejection area could be a little bit higher than before, between $5,777-$5,900.
The last 4H candle is a bearish candlestick pattern called Engulfing and this could be a possible starting point to make a correction downwards. It occurred just a little bit earlier than expected but let's see, definitely pretty strong bearish signs.
Currently, $5,400 has held the price several times which will be a sign that still(!), we might see a bounce to the mentioned target 5,777-5,900, as you read and as you see, definitely, nothing certain because we don't have any bigger confirmations.
On the Daily timeframe, we have a candlestick pattern called Inside Bar. If the price makes a breakout from either direction then it would be a short-term confirmation (break below or above the blue lines).
Definitely, a bigger and more important confirmation would be a downwards breakout because the yesterday's candle was bearish and it got a close below the round number $5,500, so, you should watch that $5,376-$5,400 level very closely.
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The golden cross is about to happen on the daily chart
We expect a correction but to $4500 or higher.
Indicators show the price saturation but Ichimoku Cloud is in the strong bull mode. We may have a retrace to the top of the cloud which is at $5300.
We will keep you updated.