BTC once again at Heavy Resistance Zone (6,800)
For the past month Bitcoin has been finding resistance at the $6,800 region, and once again we are seeing a slowing of momentum at this price level.
In my last idea I discussed how important it is for the bulls to break this resistance if they want this rally to succeed.
Here is why price could struggle to move higher:
- This price level is right at an area of overlapping Fibonacci retracements (0.5 and 0.786)
- This zone is also a price level that has had the highest trading volume since the middle of March (Notice Point of Control in red on the volume profile tool)
- The 50MA on the daily time frame has just recently created even more resistance
- Hidden bearish divergence on the RSI
- Alt’s are starting to show some signs of weakening
Many people on TradingView are calling for an inverse head&shoulders formation. I have been aware of this possibility for a few weeks before it even fully took shape, but now it seems everyone on here is pointing out this pattern. I’ve seen many H&S formations fail on Bitcoin and the fact that so many people are calling for this pattern tells me that it will not follow through. Remember to think like the whales!
Instead, from the bearish perspective, I am seeing the formation of a bearish ascending triangle (in blue).
If this formation plays out it could also be viewed as a massive bearish pennant with the pole forming from 10k down to 5,750.
This would obviously lead to some serious downside in price, so we will address that when the time comes.
Keep in mind, things can turn around if the bulls make some moves to push this through this heavy resistance zone. This isn’t a short call, I’m just pointing out what the chart is telling me right now and for my followers to be aware of this and not buy into the resistance area. Wait for a breakout before going long if you haven’t already at lower prices.
If you found my analysis useful, please give it a thumbs up! Thanks!
In my last idea I discussed how important it is for the bulls to break this resistance if they want this rally to succeed.
Here is why price could struggle to move higher:
- This price level is right at an area of overlapping Fibonacci retracements (0.5 and 0.786)
- This zone is also a price level that has had the highest trading volume since the middle of March (Notice Point of Control in red on the volume profile tool)
- The 50MA on the daily time frame has just recently created even more resistance
- Hidden bearish divergence on the RSI
- Alt’s are starting to show some signs of weakening
Many people on TradingView are calling for an inverse head&shoulders formation. I have been aware of this possibility for a few weeks before it even fully took shape, but now it seems everyone on here is pointing out this pattern. I’ve seen many H&S formations fail on Bitcoin and the fact that so many people are calling for this pattern tells me that it will not follow through. Remember to think like the whales!
Instead, from the bearish perspective, I am seeing the formation of a bearish ascending triangle (in blue).
If this formation plays out it could also be viewed as a massive bearish pennant with the pole forming from 10k down to 5,750.
This would obviously lead to some serious downside in price, so we will address that when the time comes.
Keep in mind, things can turn around if the bulls make some moves to push this through this heavy resistance zone. This isn’t a short call, I’m just pointing out what the chart is telling me right now and for my followers to be aware of this and not buy into the resistance area. Wait for a breakout before going long if you haven’t already at lower prices.
If you found my analysis useful, please give it a thumbs up! Thanks!
Comment:
Comment:
And there it is! Finally the bulls were able to break this 6,800 resistance level with some nice volume to go along with it. This is exactly what the bulls needed to get this rally going! I will have a new update hopefully by tomorrow of our next targets to focus on