Good morning, traders. Bitcoin has continued to move as suggested it would. As expected, yesterday's move up reached the top of the ascending channel I discussed during the morning's live stream. Overnight, the 15 minute RSI has had a good reset and MACD has just crossed bullishly. Price appears to be printing a flag, and a breach of that flag in the near term should have price targeting just above the 4H R2 pivot at around $6656. However, the longer it takes price to breach the flag the lower that target will be, as we could see price extend its retracement to the bottom of the ascending channel, though it should at least reach that R2 pivot when it does breach. This will pull price above the black TR's resistance.
Ultimately, we are watching for price to push through the upper black horizontal line which denotes the top of the resistance area at the $6800 level thereby creating a show of strength (SOS). The expectation at that point would be retracement and consolidation around that upper black horizontal line (possibly printing a pennant) in the form of a "back up to the edge of the creek/last point of support" (BUEC/LPS) followed by another SOS above $7000. If that SOS-to-BUEC/LPS prints a pennant around $6800, then at this time we can expect a target of around $7600 when price breaks the pennant's resistance. This would complete the complex fulcrum and should signal the bull market is likely in effect. Remember, a breach of $8500 gives us the higher high that we've been waiting for and would likely be a strong buy signal to many traders sitting on the sidelines. After that, $10,000 becomes the next signal, and then of course the February high around $11,780.
OBV continues to look great on the 15 minute, 4H, and 1D charts. The 3D chart is showing OBV breaching the resistance of the symmetrical triangle that it has been printing since June 21st. Notice that is near the price low for this corrective cycle which came just a few days later. 3D RSI has also breached its symmetrical triangle resistance that's been printing during the same period and sits just under bullish at 49. MACD is nearing the highest point it has been since January, a breach of which should be significantly bullish for the pair.
Overall, price remains within the larger two-month-old black TR between $6095 and $6587. Once price moves through the resistance or support of that TR, I will evaluate the movement to decide whether I will enter at that time. Until then, all this little movement is nothing more than noise with a risk that is far too great in exchange for any reward for me.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
Ultimately, we are watching for price to push through the upper black horizontal line which denotes the top of the resistance area at the $6800 level thereby creating a show of strength (SOS). The expectation at that point would be retracement and consolidation around that upper black horizontal line (possibly printing a pennant) in the form of a "back up to the edge of the creek/last point of support" (BUEC/LPS) followed by another SOS above $7000. If that SOS-to-BUEC/LPS prints a pennant around $6800, then at this time we can expect a target of around $7600 when price breaks the pennant's resistance. This would complete the complex fulcrum and should signal the bull market is likely in effect. Remember, a breach of $8500 gives us the higher high that we've been waiting for and would likely be a strong buy signal to many traders sitting on the sidelines. After that, $10,000 becomes the next signal, and then of course the February high around $11,780.
OBV continues to look great on the 15 minute, 4H, and 1D charts. The 3D chart is showing OBV breaching the resistance of the symmetrical triangle that it has been printing since June 21st. Notice that is near the price low for this corrective cycle which came just a few days later. 3D RSI has also breached its symmetrical triangle resistance that's been printing during the same period and sits just under bullish at 49. MACD is nearing the highest point it has been since January, a breach of which should be significantly bullish for the pair.
Overall, price remains within the larger two-month-old black TR between $6095 and $6587. Once price moves through the resistance or support of that TR, I will evaluate the movement to decide whether I will enter at that time. Until then, all this little movement is nothing more than noise with a risk that is far too great in exchange for any reward for me.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.