Bitcoin Consolidates as Projected! Here's What I See Next! (BTC)
Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! Looking at the daily chart, we can see that Bitcoin has been printing a bull flag consolidation (in black,) after Tuesday's massive rally, just as I had suggested it would, during the last analysis. When we look at the current price action, and compare it to the fall from 6000, we can see how clear the similarities are. When price broke down from 6K, it tested an area that would later become the 61.8% retrace for the entire decline to 3150. Now, we are right back at that 61.8% retrace level, in the exact same technical formation. During the fall from 6000, it was a bear flag that (on the daily chart) consisted of a few long wicked accumulation candles. Now, Bitcoin is doing the exact same thing, just in the opposite direction. We shot straight up to the 61.8% retrace, and we're in a bull flag that consists of a few long wicked distribution candles.
So, the 61.8% retrace is the current line in the sand. As soon as price can rally up and close a candle above that, I think price will shoot up toward the major overhead resistance zone. That's where I think we will run into a wall. I do think there is a bit more upside, but I don't necessarily believe that we will be able to surpass the major overhead resistance zone — especially on the first attempt.
The basic direction that I think price will most likely take, is shown by the arrows on the chart. We were recently able to blast up above the 200 MA (in purple) and I think that it could provide initial support, when we return to it in the future. So, I will be looking to take profits when we reach the next leg higher, or if we see a sudden breakdown of the bull flag.
If you were following me before and after the fall from 6000, you probably remember that I called the fall with near perfect accuracy. Likewise, I called this rally only about an hour before it happened. For those who may have missed those calls, you can review the links to those analyses below.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
So, the 61.8% retrace is the current line in the sand. As soon as price can rally up and close a candle above that, I think price will shoot up toward the major overhead resistance zone. That's where I think we will run into a wall. I do think there is a bit more upside, but I don't necessarily believe that we will be able to surpass the major overhead resistance zone — especially on the first attempt.
The basic direction that I think price will most likely take, is shown by the arrows on the chart. We were recently able to blast up above the 200 MA (in purple) and I think that it could provide initial support, when we return to it in the future. So, I will be looking to take profits when we reach the next leg higher, or if we see a sudden breakdown of the bull flag.
If you were following me before and after the fall from 6000, you probably remember that I called the fall with near perfect accuracy. Likewise, I called this rally only about an hour before it happened. For those who may have missed those calls, you can review the links to those analyses below.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
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