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Let us start off by taking a step back at the larger time frames.
On the 1D Price could be seen in a falling triangular structure. coming off a on the RIS and , Price is attempting to make its way up to the descending at $9,000. There will be much to prove today and the remainder of the week.
Zooming in on the 1D we can see currently price is having trouble with the 13 with the 21 now crossing below the 200. However, these death crosses might not hold as much weight in this current situation considering the overall trend happening this year.
Now Let us look at the 4H chart and find some key levels to watch out for.
The $8,200 level is going to be critical moving forward here. Price is now struggling with this resistance with the positive momentum resetting now. Price has already hit the 0.0786 retrace of the recent move and will need to hold support here if the 1.272 or 1.618 Fib levels will be visited.
On the immediate level we would measure the recents high and low points to get an idea of a retrace from the $8,300 top. A indication would be support on the 0.382 and a break of the previous high price. The 13 has crosses above the 21 with price just under the 55. The 0.618 is the ideal re entry point but can go even lower as seen in previous structures.
The 1H chart is showing us some interest coming back.
Price is holding support now over the 200 with the resetting negative momentum. has been forming a flag along side with the price action.
If this is indeed a , then we would look out for a measured move off the pole and place it at the end of the flag itself for a target area. In this case price might make its way up to $8,647 which is just under the 1.272 Fib level seen on the 4H chart above.
The smaller time frames here can be helpful in seeing immediate areas of selling or buying pressure.
Here we can see less on the rise up in conjunction with the lower high in . Lower interest means less buyers to sustain the price. Sellers come in a push the price down. It is possible now for the to be forming a with price's falling consolidation. This is something that is needed for continued movement up.
From a closer look the EMAs are attempting a cross up and continuation further.
I believe that price will most likely continue consolidation downward until a more lucrative re entry point is approached, however if the previous high of $8,300 is broken with conviction, we will be looking out for those higher targets mentioned above.
Remember this is only my opinion and should not be taken as trade advice.
The only controllable aspect of trading is risk management!
In trading we are not attempting to "catch" or "call" the price action. We are simply attempting to find an edge that gives us a higher probability for success. Looking out for these subtle cues and clues left behind will assist in that. "We should never be saying what price 'will' do, more so what it 'should' do and be happy with even a small portion of the gains. " - Bernard Baruch
My current thoughts on the recent development.
If price makes a lower low with less negative momentum and bounces up we could see an early break of this descending consolidation. With that being said the higher targets won't be on the table until $8,300 is broken.
We could be seeing an early break here.
The start of the candle was strong but ended with a rejection.
Wedge pattern is still holding up.
looking to break these descending patterns
A bull flag has formed and is looking to break to the upside