There has been gradually declining volume since bitcoin started the bounce routine so in the short term, I don't expect price to rise beyond the $4770 (618 fib) - $4900 (786 fib) resistance area which coincides with the resistance of the ascending channel which price has been respecting since the start of the recent bounces a couple of days ago and which is busy forming a bear flag. Just wait for the RSI support to break for price reversal.
Bitcoin needs more momentum to break the $4900 imo and the only way is if we tap into liquidity near the low $4k area to add buying pressure. I would have thought the support levels we have already reached would have been sufficient but doesn't look like buyers are ready to jump in just yet so in all probability we're probably heading to test the lows again.
Once we reach the lower $4k area, I expect a strong bounce from the bottom of the channel support and/or from the larger trend line support connecting the 15 November low. Price should then test the 386 fib and larger channel resistance around $4750. If price can break through the $4750 with volume then there should be a sustained move to 618 fib around $5100.
If price can break the $5100 resistance then I think my previous post trade idea can come into play with a final target of $5900.
Previous post:
Good luck and happy trading!
Bitcoin needs more momentum to break the $4900 imo and the only way is if we tap into liquidity near the low $4k area to add buying pressure. I would have thought the support levels we have already reached would have been sufficient but doesn't look like buyers are ready to jump in just yet so in all probability we're probably heading to test the lows again.
Once we reach the lower $4k area, I expect a strong bounce from the bottom of the channel support and/or from the larger trend line support connecting the 15 November low. Price should then test the 386 fib and larger channel resistance around $4750. If price can break through the $4750 with volume then there should be a sustained move to 618 fib around $5100.
If price can break the $5100 resistance then I think my previous post trade idea can come into play with a final target of $5900.
Previous post:
Good luck and happy trading!
Comment:
Seems to be a bearish pennant playing out but I don't trust this based on the reliability of chart patterns over the course of this crash. Looks liker the bulls have been holding the $4500 support all day. Could be consolidation for a move back to the mid 5000s.
Trade active:
Price may bounce at any time from these levels so keep an eye on the chart if you're aiming for the $4150. Stochastics still has some room to the downside however RSI is fast becoming oversold on the 4 hr again.
