BTC Blows Through An Old Resistance - We're Officially Bullish
I think I'm going to have to forget about the CME gap for a while, because I've noticed that it causes me to have a dangerously strong bearish bias that might cause me to miss out on catching the bottom of several of my favorite alt coins. Sure, it's still possible that at some point in the future we could close that gap at $9600. But for right now, with the evidence that we have in front of us on the 4-hour chart, we don't need to be thinking about the CME gap at all.
Here's why...
See that blue dashed line on my chart? That goes back to September 2nd, where Bitcoin found major resistance after trying to recover from the slide off the peak on the previous day. Follow that dashed line over to the dark line that caps off the candle on October 10th. TWICE we bumped that line and met stiff resistance. But on the THIRD time, that former resistance flipped to SUPPORT. The big fat October 12th candle on the 4-hour proved that the resistance has definitely been broken. After this action, there's no doubt that the breakout from the symmetric triangle formation is a bullish break. This means we're probably going to be leveling up a few steps over the next week or so.
Here's something else you'll notice on the chart, that confirms the fact we are in a very bullish state. Do you see how the stochastic was on its down cycle while the upward price pressure was testing that resistance line at 11,427? That's what we call a divergence. Pretty good example of one, at that! If the stoch is headed in its down cycle but we're breaking through resistance levels, what's going to happen when the stoch gets to the bottom of the cycle and starts moving up? You guessed it... breakout. A possible short-term target is 11,750, where you see that next volume profile cluster. We're trading in the "slip zone" right now, where there is relatively low trading volume at the current price range.
This could flip and change bearish at any moment. But when we see all these things happening at once, and the price line showing strength on moderate to low volume, it's probably best to respect the bull and not get trampled. But one thing I do notice that is possibly significant is the fact that half of my favorite alt coins are not following suit and mirroring the Bitcoin price movement. This means I'll probably be stuck staring at this computer screen all day and half the night, because I can't dadburn tell what the heck is going to happen next.
Not financial advice. Make ya own dang opinion.
Carlton Flowers
The CryptoPro
Here's why...
See that blue dashed line on my chart? That goes back to September 2nd, where Bitcoin found major resistance after trying to recover from the slide off the peak on the previous day. Follow that dashed line over to the dark line that caps off the candle on October 10th. TWICE we bumped that line and met stiff resistance. But on the THIRD time, that former resistance flipped to SUPPORT. The big fat October 12th candle on the 4-hour proved that the resistance has definitely been broken. After this action, there's no doubt that the breakout from the symmetric triangle formation is a bullish break. This means we're probably going to be leveling up a few steps over the next week or so.
Here's something else you'll notice on the chart, that confirms the fact we are in a very bullish state. Do you see how the stochastic was on its down cycle while the upward price pressure was testing that resistance line at 11,427? That's what we call a divergence. Pretty good example of one, at that! If the stoch is headed in its down cycle but we're breaking through resistance levels, what's going to happen when the stoch gets to the bottom of the cycle and starts moving up? You guessed it... breakout. A possible short-term target is 11,750, where you see that next volume profile cluster. We're trading in the "slip zone" right now, where there is relatively low trading volume at the current price range.
This could flip and change bearish at any moment. But when we see all these things happening at once, and the price line showing strength on moderate to low volume, it's probably best to respect the bull and not get trampled. But one thing I do notice that is possibly significant is the fact that half of my favorite alt coins are not following suit and mirroring the Bitcoin price movement. This means I'll probably be stuck staring at this computer screen all day and half the night, because I can't dadburn tell what the heck is going to happen next.
Not financial advice. Make ya own dang opinion.
Carlton Flowers
The CryptoPro