After a bounce from $9000, the Bitcoin price has climbed back above the $10,000.
Currently, the price trades in the middle of the ranges and it is pretty corrective but still, we should get pretty nice trading opportunities with confirmations. Firstly, it can offer breakout trade opportunities and we should wait for breakout confirmations! To be said, my eyes are pointed into the $12,000 for "short" because of the lower lows and lower highs. Why the price should go higher? Obviously, there are some reasons behind it but the major reason is the pattern "Morning Star" formation on the Daily 4-5 days ago which can drive the price higher. That's why I would like to point out some strong resistances just above the current price BUT while the price approach that 12k, we may get a good buy setup as well.
If the price doesn't go higher from the current levels then I have a plan for it as well! So, a lot of opportunities, it should be interesting.
Okay, now those resistances (blue areas above the price). Two major resistances and the price has printed those resistances nicely around the semi-round numbers:
1. Around $11,000
2. Around $12,000
1. Around $11,000
It is the nearest (while I write this post the price is ~$10,600) and it is worked pretty nicely as a and as a , criteria:
- The round number $11,000
- Previously worked strong price level
- 38%. 38% Fibo retracement level is basically the momentum level. If the current slight down pressure is serious then this can be the area where it starts to go downwards.
- 4-hour timeframe EMA's (50, 100, 200) are around the area and they should act/work as resistance levels.
The criteria count is pretty low but the area is strong. It already got a rejection and a possible confirmation (a 4H candle close below $10,350) should come after the breakout from the chart pattern called . It can lead the price into the Bart move:
2. Around $12,000
The price should start to approach it more seriously after the 4H candle close above the $11,150. Then the prementioned has cracked, the prementioned pattern starts work in our favor and it has made a breakout from another chart pattern. This time it is a chart pattern called "Inverted Head & Shoulders" and the target should stay around $12,000:
Now, the reversal criteria around $12,000:
- The round number itself should act as a resistance
- The major counter-trendline (black line) should act as a
- 62% known as a Golden Ratio
- Previously worked resistance on 4th July and on 12th July.
- Fibonacci Extensions
Individually the strongest criterion is still the strong area around $11,000 but more reliable criteria are located exactly around $12,000 and as always - to be more secure, wait for a formation.
SUMMARY: Three trading opportunities:
1. SELL opportunity: wait for a 1H or 4H (more reliable is a 4H) candle close below $10,350. Targets $10k etc.
2. BUY opportunity: wait for a 1H or 4H (more reliable is a 4H) candle close above the $11,150. Target around 12k
3. SELL opportunity: wait for a formation around the $12k. Targets $11k etc.
Do your own research and if this matching with one of my three options then you are ready to go!
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Scenario 1. has worked out perfectly. We got a 4H candle close below the HS, the price made even a retest and TP1 has reached, perfect:
I have pretty quiet because the price has moved into my shown direction without any bigger information, until the last 4H candle.
The last 4H candle was pretty powerful compared to others around it and it got a close above the psychological level $10,000.
I just wanted to warn you that the resistance just above the current price is pretty strong. There are all important 4H EMA's, couple of counter trendlines.
If the time comes and if the price can break through from it then we might see a pretty good sell opportunity on higher levels. It depends on how the price reacts to these resistances and etc.
If it gets a rejection from them (around $10,500) then the mentioned 9k is not so reliable anymore. One more attempt to push the price down below the higher orange horizontal line ($9651) will guide the price lower than 9k!
Hopefully, the price goes higher because the short-term sell setup looks really great ;)
Yes, I had really great vacation, thank you!