BITCOIN - The First Clean Resistance Area, The New HH!?
The consistency, the consistency, the consistency - I have mentioned it multiple times and again it is the major indication in the crypto world.
As you see those last candles getting bigger and bigger after every candle, that is exactly what I mean by that but let's take a look about the current situation.
First clean resistance areas:
Here, around $8,000, we have the first major clean resistance area. Remember the Fibonacci party in 2018, when every high was almost exactly that Fibonacci golden ratio 62%. Currently, the first blue area just above the current price is one of the tops from the Fibo party!
This level should put the price under the bigger pressure after the rally from 4k. Yes, the pressure was also around the $6k but this level got cracked pretty quickly - like a warm knife through the butter. Luckily/unfortunately this is not just a clean resistance, here we can find more interesting parts.
The curve trendline:
Touching points are marked as the green boxes and the fourth touch matching exactly with the strong resistance area around $8,000. This is not just a random curve trendline, to confirm that I made copy/paste and it matching exactly with the lower points on the graph. It makes an interesting curve channel where the price has drifted more than a year now.
Fibonacci retracement 38% & 62%:
38% is pulled from the 2018 high point to the 2018 low point.
62% is pulled from the point where the curve trendline starts and drawn to the 2018 low point.
Those together may give a slight impact, individually they should not work at the moment because of the price pump. One Fibo level can't stop this train but there is resistance, curve trendlines and now two Fibo levels which may(!!) give a possible rejection, if not, then we have also another scenario, scenario which needs a confirmation close.
Soon we can find out, do this level works or not, at least it should be a pretty hard test for the price. Whenever the throwback starts, it should be smoother than the upwards movement.
The scenario which needs a confirmation:
IF the price can reach above the mentioned strong resistance area (blue area) and if it gets a close above of it - at least Daily candle close is needed - then we have a pretty nice breakout upwards, long-term higher high (HH) is confirmed and the next major target is another strong and clean resistance area which is also the psychological level $10000. Can't promise higher levels than that but if the consistency continues then there is also one of the key resistance just above the $12,000. Actually, it is unbelievable that I have to type in five digits numbers after I say BTC price, it happened pretty fast :)
"Most people know that the outcome of a coin toss is random. If you believe the outcome is
random, then you naturally expect a random outcome. Randomness implies at least some
degree of uncertainty. When we accept in advance of an event that we don’t know how it
will turn out, that acceptance has the effect of keeping our expectations neutral and
open-minded. If you really believed in a random distribution between wins and losses, could
you ever feel betrayed by the market?!"
– Mark Douglas
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice day,
Cheers!
*This information is not a recommendation to go "LONG" or "SHORT", it is mostly used for educational purposes only!
As you see those last candles getting bigger and bigger after every candle, that is exactly what I mean by that but let's take a look about the current situation.
First clean resistance areas:
Here, around $8,000, we have the first major clean resistance area. Remember the Fibonacci party in 2018, when every high was almost exactly that Fibonacci golden ratio 62%. Currently, the first blue area just above the current price is one of the tops from the Fibo party!
This level should put the price under the bigger pressure after the rally from 4k. Yes, the pressure was also around the $6k but this level got cracked pretty quickly - like a warm knife through the butter. Luckily/unfortunately this is not just a clean resistance, here we can find more interesting parts.
The curve trendline:
Touching points are marked as the green boxes and the fourth touch matching exactly with the strong resistance area around $8,000. This is not just a random curve trendline, to confirm that I made copy/paste and it matching exactly with the lower points on the graph. It makes an interesting curve channel where the price has drifted more than a year now.
Fibonacci retracement 38% & 62%:
38% is pulled from the 2018 high point to the 2018 low point.
62% is pulled from the point where the curve trendline starts and drawn to the 2018 low point.
Those together may give a slight impact, individually they should not work at the moment because of the price pump. One Fibo level can't stop this train but there is resistance, curve trendlines and now two Fibo levels which may(!!) give a possible rejection, if not, then we have also another scenario, scenario which needs a confirmation close.
Soon we can find out, do this level works or not, at least it should be a pretty hard test for the price. Whenever the throwback starts, it should be smoother than the upwards movement.
The scenario which needs a confirmation:
IF the price can reach above the mentioned strong resistance area (blue area) and if it gets a close above of it - at least Daily candle close is needed - then we have a pretty nice breakout upwards, long-term higher high (HH) is confirmed and the next major target is another strong and clean resistance area which is also the psychological level $10000. Can't promise higher levels than that but if the consistency continues then there is also one of the key resistance just above the $12,000. Actually, it is unbelievable that I have to type in five digits numbers after I say BTC price, it happened pretty fast :)
"Most people know that the outcome of a coin toss is random. If you believe the outcome is
random, then you naturally expect a random outcome. Randomness implies at least some
degree of uncertainty. When we accept in advance of an event that we don’t know how it
will turn out, that acceptance has the effect of keeping our expectations neutral and
open-minded. If you really believed in a random distribution between wins and losses, could
you ever feel betrayed by the market?!"
– Mark Douglas
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice day,
Cheers!
*This information is not a recommendation to go "LONG" or "SHORT", it is mostly used for educational purposes only!
Comment:
New analysis: A bit more specific about that current $8,000
Feel free to support this idea post! ;)
Comment:
NEW BTC Post: Correction warning, signs from the candlestick patterns!!
Feel free to support my effort by hitting the "LIKE"
Thank you very much, it means a lot to me!
Thank you very much, it means a lot to me!
IF the Daily candle gets a close like this, Shooting Star a bearish candlestick pattern, then there is a pretty high chance that tomorrow the price may continue that waited for correction downwards.
If this was helpful then feel free to support my idea post by hitting the "LIKE"!
Thank you!