Bitcoin Falling Into Buy Area, May Reverse To Current High

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Last night a huge rise caused Bitcoin to break through the 6500 big round number.

Today the price has pulled back slightly and is now consolidating as the traders and investors who made money from the rise take profits off their positions.

The two points to watch are the small area found at the bottom of the profit taking and the area that formed at the beginning of the rise.

Often, when traders and investors take profits after a big move they buy in again near the point where the move (a rise in our case) ended. The small area I've marked is drawn on this point, and as you can see, the price has already reversed from it two times, indicating traders and investors are actively buying around this area. So we could a rise up to the current high if the price enters the area later on today.

When the price falls into this area watch for reversal candlesticks e.g bullish hammers and engulfs to appear on the 5 minute time-frame.

The other area to watch is the one found at the beginning of the rise.

The small area, despite being a place where the price could reverse, isn't that strong, so the price may well break it and move into the area below. This area is much stronger than the smaller one, due it being the last know point where large traders and investors bought a huge amount of Bitcoin , so it has a much better chance of causing the price to reverse.

Again, keep an eye out for the reversal candlestick if the price enters this area.


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