Good morning, traders. The consolidation for Bitcoin continues along an S/R line (H4 dotted red horizontal line) that's been prevalent since December. I have continued to readjust the H4 RSI descending channel to more correctly fit the price movement. At this point, we see RSI nearing a potential break of the channel's resistance as well as having just recently broken the short-term triangle's resistance. However, price remains just under the 21 EMA after having bounced off the bottom of the ascending channel this morning. This has price at the apex of a triangle created by the descending broadening wedge's resistance and ascending channel's support. The daily chart shows a possible ascending wedge printing in red. Based on the height of the wedge, that would signal a target of around $3590 which also is at an S/R level as noted by the blue horizontal line and another HVN.
If further movement to the downside occurs, then I would want to see the February 27th swing low hold at $3658.19. What this means is that I don't want to see a daily close below that. A wick below and close above would print a bullish SFP and signal likely upward price progression once again. If this were to play out, it would be a strong liquidity grab to fuel that price appreciation. Prior to that point, I would want to see the H4 March 8th swing low at $3760.10 hold.
The weekly 200 MA is sitting at $3408 right now, so it is possible to see price fall toward that level as that is also the ascending support of the monthly symmetrical triangle. Furthermore, as I have continued to mention, price is not out of the woods yet so we cannot rule out a flash drop to $2400 either. Interestingly, for channel traders, that would confirm a large ascending channel from the 2013 high to the 2015 low to the 2017 high. This kind of drop would need to just appear as a wick on the weekly chart with a close back above the 200 MA, otherwise we could be in for a much longer correction.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
If further movement to the downside occurs, then I would want to see the February 27th swing low hold at $3658.19. What this means is that I don't want to see a daily close below that. A wick below and close above would print a bullish SFP and signal likely upward price progression once again. If this were to play out, it would be a strong liquidity grab to fuel that price appreciation. Prior to that point, I would want to see the H4 March 8th swing low at $3760.10 hold.
The weekly 200 MA is sitting at $3408 right now, so it is possible to see price fall toward that level as that is also the ascending support of the monthly symmetrical triangle. Furthermore, as I have continued to mention, price is not out of the woods yet so we cannot rule out a flash drop to $2400 either. Interestingly, for channel traders, that would confirm a large ascending channel from the 2013 high to the 2015 low to the 2017 high. This kind of drop would need to just appear as a wick on the weekly chart with a close back above the 200 MA, otherwise we could be in for a much longer correction.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
