BTC has been looking quite strong for the past few days, breaking up into the 7k region and has continued up to the 7300 area where it faces some strong resistance.
As you can see on the daily chart there has been multiple pull backs to the 61.8 fib level after each impulse move. The 61.8 fib level for the most recent push lines up perfectly with the next daily resistance level at around 7413.
I feel that this will be a very strong level of resistance and after the strong run BTC has already had to get to this area, I feel there is a high chance it will be rejected and retrace down to look for support.
However, after trending down for the whole of 2018 so far, BTC has finally made its first higher low on the daily after bouncing at the 5900 support. This is a good sign that BTC might finally be starting to turn around and go bullish. We still need a few more confirmations first though.
I will be watching closely over the next few days/weeks and looking for another higher low to be formed. This would be achieved if the 6750 support is respected and that level would be a healthy pullback before the next push. If we do get a bounce from that level or another support level for a higher low, we may see BTC continue to move up to retest that long term down trend/wedge top line and potentially break out to confirm a new bullish trend.
Waiting for confirmation before entering my long position.
I am also using smaller time frames to trade longs/shorts on bitmex during these choppy market times and will be posting some of my XBTUSD charts soon.
As you can see on the daily chart there has been multiple pull backs to the 61.8 fib level after each impulse move. The 61.8 fib level for the most recent push lines up perfectly with the next daily resistance level at around 7413.
I feel that this will be a very strong level of resistance and after the strong run BTC has already had to get to this area, I feel there is a high chance it will be rejected and retrace down to look for support.
However, after trending down for the whole of 2018 so far, BTC has finally made its first higher low on the daily after bouncing at the 5900 support. This is a good sign that BTC might finally be starting to turn around and go bullish. We still need a few more confirmations first though.
I will be watching closely over the next few days/weeks and looking for another higher low to be formed. This would be achieved if the 6750 support is respected and that level would be a healthy pullback before the next push. If we do get a bounce from that level or another support level for a higher low, we may see BTC continue to move up to retest that long term down trend/wedge top line and potentially break out to confirm a new bullish trend.
Waiting for confirmation before entering my long position.
I am also using smaller time frames to trade longs/shorts on bitmex during these choppy market times and will be posting some of my XBTUSD charts soon.