You are probably aware of the current market crash. We are making lower lows again and again. Altough, we have several bullish signs that indicate upward price movement. Firstly, the falling wedge. Everyone knows it, and what it means: clear bullish sign. Secondly, we have a bullish divergence on the 4H RSI. It also indicates an upward breakout.
On this daily chart linked below, you can see that we stopped at the 0.786 fibb at 7.2k and it was also a horizontal support, because of a previous low.
You can also see that daily Stoch RSI is about to cross soon, which would confirm the idea of the breakout out of the falling wedge.
I would highly recommend to follow with attention the G20 meeting on the 19th and 20th of March. Good news would confirm the breakout and smart money would come in. Regulations do not necessarily mean bad news. However, significant contrary opinions may lead to continous FUD. Watch the price and volume carefully.
If we break out of the wedge (red line) with high volume, I would say that the best case scenario is to hit 10k. There are intermediary resistances at 9k (0.382 fibb.) and 9.5k (0.5 fibb.). The 10k is at the 0.682 or the so-called golden ratio.
On the other hand, if we do not manage to break out we are likely to go all the way down to 6.5 to 6k to create a double bottom.
Does the current price yield a ripe entry point or the bears gonna take over? It is up to your interpretation.
If you have any question please leave a comment below! If you found it helpful please leave a like!:)
***It is not a financial advice! I am not telling anyone to buy or sell bitcoin!***
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Ok, we had a nice rally. Before the next impulsive wave I do expect a correction down to 8150. It is the 0.328 fibbo and the 20 MA is also converging there as a support. We have a Stoch RSI cross on the 4H, so the 8150 level looks realistic.
Whales just trying to get the best prices; nothing unusual or to worry about.
KryptonuQ
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@mightytrader, Agree. What is your target low, may I ask?
mightytrader
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@KryptonuQ, Idk. I bought some under $7500 though. Position is small enough that if I get liquidated (as I have no SL), it's no big deal.
I'm thinking maybe as low as $6750 in an extreme case before a pump. So, I suspect if that happens it pump and I about break even.
mightytrader
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@KryptonuQ, But I think it go up from now on... FUD regarding hacks and Mr. Mt Gox and G20 should all be discounted in price. Also the silly news about BTC going down do people can avoid capital gains... makes no sense the news.
@KryptonuQ, Keep in mind that the trend is still down. It could reverse here but IDK. i just like to do counter-trend trades with small amount for learning experience and predict how Whales will fool traders and amateur alike! ;)
mightytrader
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@KryptonuQ, I am setting a SL now below today's low. I set a SL now as price shot up past a resistance level.