Bitcoin is currently at an important technical crossroads. Everything I've previously said still stands. Bitcoin is still - until proven otherwise - in a major zigzag correction, in which it's completing the B-wave. Yet, on this chart we'll go through the latest updates. We'll deal with them systematically, so please follow the adhering numbers on the chart.
1) Bitcoin is trading right at a strong resistance zone. This area has amounted to a lot of reversal action, both in terms of closing candles as well as wicks. With that said, the even stronger resistance zone is the one between $57,700-60,000. That level is the ultimate all-time high zone at which Bitcoin faked out in April and then initiated its -55% dump. Don't for a second expect Bitcoin to push through this resistance zone without a serious fight.
2) Bitcois is currently trading precisely at the 618 fib - the golden ratio.
3) The trading volumes from $40 000 and above have been ANYTHING BUT CONVINCING. These trading volumes rather tell me that the purchasing enthusiasm is lukewarm at best.
4) The trading volumes in turn are supported by a 6-point RSI divergence on the daily chart. This means either of two things. Either Bitcoin fails this level and plunges down. This scenario is the by far most likely one. For do not be mistaken: the more points an RSI divergence is made up by, the more power it musters up. Hence, if Bitcoin were to fail, we'd do wise in expecting a serious throwback. The other alternative is that Bitcoin breaks above the current price resistance zone. This would automatically result in the RSI breaking above its divergence. This should be more than enough to pump the price up to the $57,700-60,000 resistance zone and is equally so an opportunity I intend on hopping onto with leverage.
With that said, Bitcoin is still far more likely to break down. What I'll be looking for in such case is for the RSI to test the upper bearish blue line from below, which would be THE ideal shorting signal of them all. For more on the immensely powerful RSI strategies, please watch the RSI trilogy.
1) Bitcoin is trading right at a strong resistance zone. This area has amounted to a lot of reversal action, both in terms of closing candles as well as wicks. With that said, the even stronger resistance zone is the one between $57,700-60,000. That level is the ultimate all-time high zone at which Bitcoin faked out in April and then initiated its -55% dump. Don't for a second expect Bitcoin to push through this resistance zone without a serious fight.
2) Bitcois is currently trading precisely at the 618 fib - the golden ratio.
3) The trading volumes from $40 000 and above have been ANYTHING BUT CONVINCING. These trading volumes rather tell me that the purchasing enthusiasm is lukewarm at best.
4) The trading volumes in turn are supported by a 6-point RSI divergence on the daily chart. This means either of two things. Either Bitcoin fails this level and plunges down. This scenario is the by far most likely one. For do not be mistaken: the more points an RSI divergence is made up by, the more power it musters up. Hence, if Bitcoin were to fail, we'd do wise in expecting a serious throwback. The other alternative is that Bitcoin breaks above the current price resistance zone. This would automatically result in the RSI breaking above its divergence. This should be more than enough to pump the price up to the $57,700-60,000 resistance zone and is equally so an opportunity I intend on hopping onto with leverage.
With that said, Bitcoin is still far more likely to break down. What I'll be looking for in such case is for the RSI to test the upper bearish blue line from below, which would be THE ideal shorting signal of them all. For more on the immensely powerful RSI strategies, please watch the RSI trilogy.