Bitcoin finally got some movement last night as it retested the $6500 - $6550 trend line that we were hoping for.
This trendline has held back Bitcoin for the past several months and we were expecting a pull back to add in on a long.
If you take a look at my chart below, you can really see how much Bitcoin respects the fibonacci levels from short term to long term fibonacci trends.
The confluence of the .382 fibonacci level and the previous resistance, turned support line was a great buying opportunity as buyers stepped in support the price.
The volume is low, so it's something we should keep our eye on as the price can get moved around pretty quickly.
The diagonal downtrend that we've been watching on the daily was finally broken and retested, which is the point of entry for a good break out trader.
Bitcoin has also been finding support on each of the fibonacci levels as it grinds it's way upwards and is currently sitting on the .382 support.
The RSI has gone down, but price going up is a good thing for the continuation as it gave a nice reset and the fact that it bounced off of the 40 RSI is typically an indication that we may be starting an uptrend.
This is also known as a hidden bullish divergence for a continuation.
From what I can tell and what I've been updating is that Bitcoin's 4 hour chart is the dominant time frame for charting. On it, we can see that it is very much respecting the fibonacci levels.
If we break down from the rising channel, then I'll worry that we're going to see a big move down, but most of the signs are pointing to a bullish move.
As mentioned before though, the volume is incredibly weak, so TA becomes slightly less reliable because of the fact that it only takes 1-2 big orders to shift the market when liquidity and volume are at such low levels.
Overall though, with the ranging market we've seen out of Bitcoin, it's been a great market to trade alts.
Let me know what you guys think in the comments and like and follow if you want me to keep making charts like this.
Swing and miss i'm afraid my friend. Can't win them all. I saw it coming an hour before but was too hesitant to react to it as there were too many conflicting indications.
Hopefully the 6k line holds and we're not going under.
UnknownUnicorn2774089
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proof your human
better luck next time
martinbrits28
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Very interesting .... something similar to what i have ..... just as BTC respects the Fib lines it also respects the blue trend line and stays inside the arc ... however, something will have to give soon ...
jacobcanfield
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@martinbrits28, Really cool arc analysis. Nice catch. Makes perfect sense.
kiranmalvadkar
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rookie question, so we're not considering the trend line from May high of $9856 ...the descending triangle pattern ?