Indeed, a strong recovery took place early in the morning following "a NEWS" and this could be interpreted as a "BUY the news and SELL THE FACT" !
The Bitcoin recovered in short period of time (less than 2 hours !) from 39'400 towards an intraday high so far of 41'896.37, in filling on its way up the 38.2% and the 50 % Fibonacci retracement, respectively
@ 40'287 and 41'250.
THE MAIN KEY RESISTANCE AND PIVOT LEVEL IN THIS DAILY TIME FRAME REMAINING @ 42'524 WHICH IS THE TOP OF THE DAILY CLOUDS RESISTANCE AREA !$
As long as this level is not clearly broken, recent and current price action should still be seen as a corrective move only.
RSI recovered also above the 50 area and is currently @ 53.67
LAGGING LINE also recovered above the KIJUN-SEN and is currently attempting to cross over the TENKAN-SEN
4 HOURS (H4)
The upside breakout of the downtrend line resistance, coupled with the breakout of the MBB, TS and KS triggered this sharp rebound which is currently attempting to hold above the H4 clouds.
Watch and monitor carefully the ongoing H4 closing level which will be the first warning signal of a validation or invalidation of the top of the clouds breakout, which also coincides with the 50 % Fibonacci retracement previously
mentioned in D1 (downside move from 45'332 towards 37'169)
RSI @ 64.96
LAGGING LINE currently above the clouds
Interesting to note the "thin layer" of the H4 clouds which means fragility on both sides !!!
1 HOUR (H1)
Above the clouds and above MBB, KS and TS.
First support in this H1 time frame is the TENKAN-SEN @ 40'192 ahead of the KIJUN-SEN @ 39'943 and the MID BOLLINGER BAND @ 39'352
Interesting also to note that the hourly clouds support area is very, very thin...
CONCLUSION :
On the downside the psychological 40'000 area should be seen as a pivot level for further development; indeed, a failure to hold sustainably above this level would put again the focus on lower levels (former congestion support 39'000-37'000 area)
On the upside, a successful daily closing above 42'524 would force to a view reassessment of the still expected bearish scenario and would open the door for higher levels towards the former high @ 45'332 with intermediate resistance of the ongoing daily downtrend resistance level, currently around 44'800.
Last but not least, have also a look at the weekly time frame which is showing a recovery attempt, currently roughly in the middle of the clouds; ongoing weekly candle closing will also be important to look at as it will also validate or invalidate the INVERTED HAMMER PATTERN, I mentioned in my previous analysis !
IRONMAN8848 & Jean-Pierre Burki
The Bitcoin recovered in short period of time (less than 2 hours !) from 39'400 towards an intraday high so far of 41'896.37, in filling on its way up the 38.2% and the 50 % Fibonacci retracement, respectively
@ 40'287 and 41'250.
THE MAIN KEY RESISTANCE AND PIVOT LEVEL IN THIS DAILY TIME FRAME REMAINING @ 42'524 WHICH IS THE TOP OF THE DAILY CLOUDS RESISTANCE AREA !$
As long as this level is not clearly broken, recent and current price action should still be seen as a corrective move only.
RSI recovered also above the 50 area and is currently @ 53.67
LAGGING LINE also recovered above the KIJUN-SEN and is currently attempting to cross over the TENKAN-SEN
4 HOURS (H4)
The upside breakout of the downtrend line resistance, coupled with the breakout of the MBB, TS and KS triggered this sharp rebound which is currently attempting to hold above the H4 clouds.
Watch and monitor carefully the ongoing H4 closing level which will be the first warning signal of a validation or invalidation of the top of the clouds breakout, which also coincides with the 50 % Fibonacci retracement previously
mentioned in D1 (downside move from 45'332 towards 37'169)
RSI @ 64.96
LAGGING LINE currently above the clouds
Interesting to note the "thin layer" of the H4 clouds which means fragility on both sides !!!
1 HOUR (H1)
Above the clouds and above MBB, KS and TS.
First support in this H1 time frame is the TENKAN-SEN @ 40'192 ahead of the KIJUN-SEN @ 39'943 and the MID BOLLINGER BAND @ 39'352
Interesting also to note that the hourly clouds support area is very, very thin...
CONCLUSION :
On the downside the psychological 40'000 area should be seen as a pivot level for further development; indeed, a failure to hold sustainably above this level would put again the focus on lower levels (former congestion support 39'000-37'000 area)
On the upside, a successful daily closing above 42'524 would force to a view reassessment of the still expected bearish scenario and would open the door for higher levels towards the former high @ 45'332 with intermediate resistance of the ongoing daily downtrend resistance level, currently around 44'800.
Last but not least, have also a look at the weekly time frame which is showing a recovery attempt, currently roughly in the middle of the clouds; ongoing weekly candle closing will also be important to look at as it will also validate or invalidate the INVERTED HAMMER PATTERN, I mentioned in my previous analysis !
IRONMAN8848 & Jean-Pierre Burki
