Yesterday the price reached almost to the $6,000 but it didn't get a close above the August low at $5,900. Five(!) rejections from the mentioned resistance and the day got an end below the all of those marked Monthly lows plus below the Fibonacci 62% retracement level:
As you see on the yesterday's candle close gave us a pattern called "Shooting Stars". It got a rejection from the all three Monthly lows which now has become resistances and rejection from the Fibo level which is pulled from the 2018 September high (~$7,400) to the 2018 low (~$3,125) point.
This Fibo level and those resistances have worked four times on the - four attempts to go higher has failed, let's see what we gonna get from today's price action but looks like bulls are still trying to push the price up. Yesterday's pattern was a slight indication that bears are starting to come in but slowly, slowly.
Let's count a bit more subjective price action criteria than those Monthly resistances and Fibo level which should make the area around $5,900 even stronger than it looks like.
Let's start from the Equal waves.
A little bit complicated but try to stay with me - after the rally at the beginning of the April, the BTC price made a slight throwback and the waves count would start from there, from 4. April low. Slowly climbing to point A on 23. April high, another throwback and there is point B. Now, equal waves are pretty nice price action criteria which will end some movements and corrections. Currently, the waves from point 0 to A and from point B to C are equal, both lengths are $877, and the C point is exactly on the well-known around the $5,900. So, another criterion which will be an indication that the area is strong and the correction may start soon.
The well-known .
Channel upper has worked several times as resistance and so as now. This runs through the $5,900. Yesterday, the price made a slight breakout from it but the Daily candle still got a close inside of it. So, another criterion which makes this area stronger.
All criteria together:
1. Three last years Monthly lows have worked nicely as resistance levels
2. Multiple times worked upper runs through the $5,900 which should work as a resistance.
3. Equal waves counting ends around the $5,900
4. level 62% have worked nicely as resistance, especially on the .
5. A bit sloppy 161% is around the $5,900.
6. And yesterday, the Bitcoin price touched those all criteria, got a rejection and this rejection and the day ends with a pattern called "Shooting Star"
Yes, pretty decent price action criteria but as they say, it is hard to catch a falling knife and currently, it is hard to catch a SpaceX. Actually, to me, there are no other options because of the strong resistance, it is just SO close to the current price. Obviously, the market is on the heavy mode but the resistance, just above us, is also heavy as hell. So, actually, again, it looks like a pretty decent sell setup considering that area and considering that Daily candle (To make a bit more confirmed sell then there is a red line. After the red line break the sell is triggered and probably a bit more secure!) but still, it is a little bit hesitating because of the current consistency. Consistency has a magic power on the crypto world and this magic power could easily drive the price above those orange lines, above the heavy resistance which should end above the $6,106!
Oh, almost forgot, there is a gray area and there is a slightly darker gray area. The darker area is a stronger area than the others around that because of the multiple rejections to either direction and because of the strong candles breakthroughs. So, currently, we have 30 min to go to another 4H candle close, if it gets a close above the darker area, then this could be a sign that bulls just do not give up but if it falls lower than the darker area then it should be more , just a slight and tiny indications to add into your analysis.
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Have a nice day,
*This information is not a recommendation to go "LONG" or "SHORT", it is mostly used for educational purposes only!
The price is still in this gray area, yes, it has climbed upwards, it has cracked a resistance after resistance but still on the gray area.
Altcoins are moved very slowly, which is a weird sign because the whole market does not get pumped, looks like only BTC. There is a price divergence compared with the RSI indicator, there is a BTC price and altcoins price divergence.
DLavrov: "The market looks overbought - it's fact. The price is at the strong resistance zone - it's a fact. It's time for the correction movement and the market will do it. It's just the question of time."
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