Bitcoin is responding well to price action on the daily chart for the last few days. What we are seeing currently is $6,400 being stable horizontal support for four days already. On our mid-week analysis on Wednesday, we commented that what we need is a confirmation of the short-term uptrend by closing a few candles above $6,400, a suggestion that came into reality in the next days. The $6,900-$7,000 area, however, seems to be hard to break for the moment and the ever-decreasing volumes are not helping much. Our good friend Fibonacci is also against us on this. He put his 38.20 retracement level exactly there, at $6,950. 24-h trading volumes are on their way down since Tuesday when they last peaked at $51 billion. We are seeing them hovering around $33 billion on Friday morning in Europe. There is a nasty bear flag present on the chart and I'm not too convinced opening a long position here is a smart move. The RSI index was inches away from breaking into my desired "buy zone", but remained flat due to the range trading were are in since Wednesday.
Zooming out to weekly:
The good news is we are still above the long-term uptrend and the 200-day EMA. The $6,900-$7,000 S/R zone is even more visible on this chart timeframe.
On daily: We have price moving above both the 200 and 100-day EMAs. There is also an ascending triangle figure being formed. All of these signs are easily bullish.
Bottom line is - there are a lot of uncertainties in the market, so opening long or short is a pure gamble now. BTC still a strong buy in the longterm investment strategy though.
Cheers guys. Keep it simple !
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The third chart above (the one with the ascending triangle) is hourly not daily...
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Ok, so it is the bear flag that came into play...Let's see if $6,150 will hold or we will see another leg down to $5,600.