Bitcoin - Minor Pullback Before Another Leg Up?

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Bitcoin recently reached the next major resistance zone (which is also formed close to MA50 & 0.5 fibonacci levels).

So the question is where it's heading next?
It's unlikely that we are going to see enough of volume today that is required for the continuation with the bullish trend . This is mainly because it's Sunday and usually on Sundays there's less volume generally.
But, however if we manage to see enough of volume , then there could be one more push upside reaching the next fibonacci level and the top line of the descending channel . This is move would be supported by the yesterday's close indecision candle - doji that also indicates continuation.

Nonetheless, the more likely scenario is that the price is going to range or test the previous support level that can be found near to 0.618 fibonacci level before any new bigger moves happen. So minor pullback should be expected and reaching this peculiar support zone may give fuel for new leg up. Sometimes it's better to let the market to breathe a bit and watch for possible formations on the chart.

What is notable here is that when this last move to upwards is compared to the previous rallies we can see that the volume didn't continue expanding like it did with the previous rallies. When volume continues expanding it signs for bullish continuation and move higher.

The market is showing a great amount of indecision mainly because some are pessimistic about the new rallies and others are just too euphoric as they expect unrealistic price targets. Often when the sentiment is divided it leads for the market to range and that's why we consider it as the most likely scenario.

Trade safely and if you have any questions feel free to ask them down below!

Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.

Comment: perfectly bounced off from the 0.618 fibonacci level


You are using fibs the wrong way. The fib on your chart measures the correction of the impulse from 3121 to 4238 so it is used to measure a move DOWN. To see the fib retracement level of the current impulse up (3337-3711) you need to put a new fib on the chart with the first pivot at 4238 (or/and you can use confluence, 4090) and the second at 3322 because this is the impulse that is being corrected.

BTCUSD H4 Correction up. Checkout the idea detail's and all the update's for the complete picture.
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