BITCOIN BATTLES 4K RESISTANCE AS VOLUME SEES CONTINUOUS SURGE
The Bullish momentum of bitcoin appears to be Loosing steam after the rejection at the 4000 resistance area. But on the contrary, Bitcoin volume seems to be gradually increasing steadily an indication that long term speculators are accumulating Bitcoin gradually within this tight range, and the weekly stochastic which is over extended above 70% level but now showing signs of a decline, also supports this fact.
The last time we saw volume this high, and the weekly stochastic above the 70% level was during the 2017 bull run, and since then it's been flat or below 20% on the weekly. What this means is that whales and instution are accumulating strongly at this level.
On the daily, stochastic is bearish, while on the 4 hour, MACD, RSI also supports the bears. However, we still have our strong resistance at the 4200 area. We may see a little correction followed by an upward push to retest the 4200 area.
On the weekly, we have our trend line support level at 3850-3800, a bounce at this weekly trendline support will validate the ascending triangle formation. The weekly resistance is at 4400, but I do not see the bulls braking that area as of now. We already had 4-5 weeks of green candles and upward move, I do expect a correction towards the trendline support, before another move upward to challenge the 4200 resistance on daily, and 4400 resistance on weekly.
A bull break above the 4400 resistance on weekly will take us straight to the 5500 resistance area, will a bull break on the daily will take us straight to the daily resistance level at 4800-5000 area.
Will the bulls succeed on this move, or are we going to see a bear breakout of this tight range? We can will keep our fingers crossed as events unfolds in real time.
On the overall, the Bitcoin's structure On the higher time frame is bullish, this tells me that, irrespective of the noise we are seeing on lower time frame, we will see push in price to the 5000 area to create FOMO, before heading back down for a finally capitulation IMO.
The last time we saw volume this high, and the weekly stochastic above the 70% level was during the 2017 bull run, and since then it's been flat or below 20% on the weekly. What this means is that whales and instution are accumulating strongly at this level.
On the daily, stochastic is bearish, while on the 4 hour, MACD, RSI also supports the bears. However, we still have our strong resistance at the 4200 area. We may see a little correction followed by an upward push to retest the 4200 area.
On the weekly, we have our trend line support level at 3850-3800, a bounce at this weekly trendline support will validate the ascending triangle formation. The weekly resistance is at 4400, but I do not see the bulls braking that area as of now. We already had 4-5 weeks of green candles and upward move, I do expect a correction towards the trendline support, before another move upward to challenge the 4200 resistance on daily, and 4400 resistance on weekly.
A bull break above the 4400 resistance on weekly will take us straight to the 5500 resistance area, will a bull break on the daily will take us straight to the daily resistance level at 4800-5000 area.
Will the bulls succeed on this move, or are we going to see a bear breakout of this tight range? We can will keep our fingers crossed as events unfolds in real time.
On the overall, the Bitcoin's structure On the higher time frame is bullish, this tells me that, irrespective of the noise we are seeing on lower time frame, we will see push in price to the 5000 area to create FOMO, before heading back down for a finally capitulation IMO.
