Currently trading at 6358, price is just above the horizontal between 6340 and 6250. when price hit this level there was some small green candles, with the bottom beginning as a piercing signal, and Doji's following afterwards. Despite bottoming out, price does not look especially strong to the upside. Right now, price is trading right at the 78.6 Fibonacci , which could potentially be a top before the next down fall. But, this entirely depends if the horizontal mentioned earlier does actually break, first. If it doesn't break, you're trading into potential buy orders, which is not good at all, you must make sure the coast is clear before you make any form of buy/sell to ensure you don't get trapped into a dud trade.
Bitcoin will now move in one of a few possible ways, these are:
1) Bitcoin trades up to the 78.6 Fibonacci (At current levels 6350) and then trades lower, breaking the horizontal between 6340 and 6250, before possibly breaking down further to a long term side-wards support line at 5920.
2) Bitcoin trades higher from current levels up to 6485, a corrective retracement level which converges with multiple moving average resistance. when price hits here, price falls and hits the horizontal between 6340 and 6250.
3) Bitcoin trades higher to the 6485 level mentioned above, and then hits the horizontal between 6340 and 6250, later breaking below this level, hitting the long term side-wards support line at 5920.
4) Bitcoin simple trades higher to 6485, and then breaks higher, using the moving averages as support and then trades higher, towards the at 6790.
Bitcoin had a fantastic opportunity yesterday to break the moving averages as resistance and use them as a support, which in turn, would have meant that Bitcoin could actually potentially be in an uptrend for months at a time.
Bear in mind that when price is bottomed out like this, we need to keep an open mind and assess the possibilities, or it isn't realistic. I personally believe scenario 1 is the most likely, followed by 2, and 3 being most unlikely. This is strictly an observation, and whichever scenario plays out I won't hesitate to take a trade in ANY of these scenarios. I don't have a favorite scenario that I'll be more eager to trade than another, I'll trade any of them with no hesitation. Not because I want to, but because I should do.
I will continue to update this analysis if it receives sufficient likes/attention.
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Looks like a level playing field, and the level price is at right now is a very important juncture level. It's the defining level for what the trend will do for the near future so let's keep an eye on how it acts!
If price breaks to the upside, it will face a lot of obstacles on the way up, as per my primary analysis scenarios, I count Bitcoin going to the higher resistance level is quite unlikely, but certainly not impossible. :-)
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It looks like scenario 1was the one to play out.
With this, we can gage buying opportunities more clearly in future.
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