Bitcoin on Bitstamp has arrived at multiple important resistance levels.
It first broke down on an inverse Cup & Handle formation, went all the way down to my first Fibonacci level and it's now bouncing up. And now it has arrived very close to that inverse C&H's neckline (little under $12700) while also coming close to the downward trendline over the most recent tops. The lows had a high volume, but on the upward move, the volume didn't keep up.
The RSI is currently trending upwards pretty well, but also there it's now approaching 2 resistance lines.
And the MACD is now slightly getting better, it's too not strong enough that the price will just break through those resistance levels.
On the 4h chart it's now also getting close to the downward moving 50MA.
If we break through all those resistances, then the Technical picture would improve significantly, but around $14000 is some more resistance.
But if we don't break through those resistances, then things can get really ugly. It would then be a confirmation of the inverse C&H formation and then the target would be around $5500 !
So my trading position is now mostly in cash because the risk-reward ratio of a long position isn't very good atm.
But I'm ready to jump back in when the rise continues. Especially since I'm very bullish from a fundamental perspective.
It first broke down on an inverse Cup & Handle formation, went all the way down to my first Fibonacci level and it's now bouncing up. And now it has arrived very close to that inverse C&H's neckline (little under $12700) while also coming close to the downward trendline over the most recent tops. The lows had a high volume, but on the upward move, the volume didn't keep up.
The RSI is currently trending upwards pretty well, but also there it's now approaching 2 resistance lines.
And the MACD is now slightly getting better, it's too not strong enough that the price will just break through those resistance levels.
On the 4h chart it's now also getting close to the downward moving 50MA.
If we break through all those resistances, then the Technical picture would improve significantly, but around $14000 is some more resistance.
But if we don't break through those resistances, then things can get really ugly. It would then be a confirmation of the inverse C&H formation and then the target would be around $5500 !
So my trading position is now mostly in cash because the risk-reward ratio of a long position isn't very good atm.
But I'm ready to jump back in when the rise continues. Especially since I'm very bullish from a fundamental perspective.
Comment:
If you like the Random Number Generator, we could be on day 3 of the rebound of a(n almost) daily 9. The 4h is just on a green 1, so neutral, but the 1h chart is now on a 9 sell.
