Bulls finally trying to defend today. Last couple charts have been on weekly time frame where we were watching to see if bulls could break to a higher high on weekly. They failed and made the lower high up at $4189 before the pretty dramatic sell off a few days ago.
Originally I was watching for a lower high in the low $4000's and then a fall to somewhere between $3600-3800. The quick fall to $3712 in a few hours had me very cautious that the bears were not done and was then expecting a slow few days before bears potentially dumped price again. We finally got the second leg down today where price fell from low $3800's to $3655. Positive is the bulls have bought that dip relatively well to bounce price back up towards $3800 as of this post.
I am now on daily time frame watching to see if bulls can build that buying volume and establish $3655 as the higher low we have been seeking for on the weekly chart. Still too early to tell but do like the fact the bulls woke up today and bought price back up.
Not pictured but if looking at 4 hour chart, watch the EMAs as 12 EMA has been solid resistance since we peaked at $4189 a few days ago. Bulls have rejected from this EMA 5-6 times now on the 4 hour time frame. A push above there with some bullish volume will help to confirm bulls are keeping the weekly chart within a healthy equilibrium. Another rejection and bears dropping price back down and the concern shifts to bulls running out of space to maintain a healthy higher low on weekly chart.
Again, I am heading out of town for several days so won't be back on charts until next week. Protect that capital, trade with patience.
Just My 2 Sats!
Originally I was watching for a lower high in the low $4000's and then a fall to somewhere between $3600-3800. The quick fall to $3712 in a few hours had me very cautious that the bears were not done and was then expecting a slow few days before bears potentially dumped price again. We finally got the second leg down today where price fell from low $3800's to $3655. Positive is the bulls have bought that dip relatively well to bounce price back up towards $3800 as of this post.
I am now on daily time frame watching to see if bulls can build that buying volume and establish $3655 as the higher low we have been seeking for on the weekly chart. Still too early to tell but do like the fact the bulls woke up today and bought price back up.
Not pictured but if looking at 4 hour chart, watch the EMAs as 12 EMA has been solid resistance since we peaked at $4189 a few days ago. Bulls have rejected from this EMA 5-6 times now on the 4 hour time frame. A push above there with some bullish volume will help to confirm bulls are keeping the weekly chart within a healthy equilibrium. Another rejection and bears dropping price back down and the concern shifts to bulls running out of space to maintain a healthy higher low on weekly chart.
Again, I am heading out of town for several days so won't be back on charts until next week. Protect that capital, trade with patience.
Just My 2 Sats!
