BTCUSD Golden Fibonacci Level | Relief Rally Imminent?
Hello Traders,
Today’s chart update will be on BTC, where is has retraced to a key Fibonacci level, known as the golden pocket. Bitcoin may put in a relief rally due to the sharp decline in price action, which has overextended a number of indicators.
Points to consider,
- Trend in a bearish structure
- Local support at key Fibonacci level
- Local resistance in the middle of the channel
- Stochastics at lower regions
- RSI oversold
- EMA’s giving price resistance
- Volume low after impulse break
The overall trend in Bitcoin has been bearish; price action has put in consecutive lower highs and lower lows. Bitcoin has recently found local support at a key Fibonacci level known as the golden pocket (between .618 and .65). This level is in confluence with trend line coming through, signalling that buyers are strong. Local resistance is found at the middle of the channel, a possible area for Bitcoin to test.
The stochastics are currently in lower regions, can stay down here for an extended period of time, however, lots of stored momentum to the upside. The RSI is currently overextended; an oversold bounce is probable from such conditions.
The EMA’s is bearish until we see a cross, it is yet to meet price at current given time. Volume is declining after impulses; an influx in volume bearish and or bullish is imminent from current levels.
Overall, in my opinion, a relief rally would be imminent due to strong technical confluences from current support level. A rally will allow indicators to cool off; .i.e the RSI, and allow price a retest of the middle channel…
What are your thoughts on Bitcoin?
Please leave a like and comment,
And remember,
“The obvious rarely happens, the unexpected constantly occurs.” – Jesse Livermore
Today’s chart update will be on BTC, where is has retraced to a key Fibonacci level, known as the golden pocket. Bitcoin may put in a relief rally due to the sharp decline in price action, which has overextended a number of indicators.
Points to consider,
- Trend in a bearish structure
- Local support at key Fibonacci level
- Local resistance in the middle of the channel
- Stochastics at lower regions
- RSI oversold
- EMA’s giving price resistance
- Volume low after impulse break
The overall trend in Bitcoin has been bearish; price action has put in consecutive lower highs and lower lows. Bitcoin has recently found local support at a key Fibonacci level known as the golden pocket (between .618 and .65). This level is in confluence with trend line coming through, signalling that buyers are strong. Local resistance is found at the middle of the channel, a possible area for Bitcoin to test.
The stochastics are currently in lower regions, can stay down here for an extended period of time, however, lots of stored momentum to the upside. The RSI is currently overextended; an oversold bounce is probable from such conditions.
The EMA’s is bearish until we see a cross, it is yet to meet price at current given time. Volume is declining after impulses; an influx in volume bearish and or bullish is imminent from current levels.
Overall, in my opinion, a relief rally would be imminent due to strong technical confluences from current support level. A rally will allow indicators to cool off; .i.e the RSI, and allow price a retest of the middle channel…
What are your thoughts on Bitcoin?
Please leave a like and comment,
And remember,
“The obvious rarely happens, the unexpected constantly occurs.” – Jesse Livermore
