Bitcoin: Bullish Fractal Analysis 4H (Apr. 25)

X FORCE GLOBAL ANALYSIS:


In this analysis, we compare Bitcoin's price movements in Feb. 2019, during the phase of consolidation leading to a breakout in the early 3k levels.

Analysis

- The fractal starts with a small consolidation marked by the blue area
- A breakout follows, forming a huge bullish engulfing candle with a long wick
- At this point, the Moving Average Convergence Divergence (MACD) form a death cross
- Inidcators cool off during this stage, with the MACD showing a downtrend as well as the Relative Strength Index (RSI)
- However, despite the indicators cooling off, prices trade between the 0.382 Fibonacci support and the 0.236 Fibonacci resistance

Market Sentiment:

Long short ratios are at 65 to 35, with still more bullish sentiment over bearish sentiment.

What We Believe

We have previously mentioned that a break and close above 7.2k levels would confirm a bullish continuation to 7.5k. Given that the prices remain in between the Fibonacci levels stated, we believe that there is a high probability for this fractal to play out.

Trade Safe.