Good morning, traders. After Bitcoin's explosive move up on Friday after CME June Bitcoin contracts expired, we have watched price consolidate throughout the weekend. However, rather than a strong retracement down to the $6150 area, ultimately price has only made it to $6260 which is just beyond the 38.2% level. While not ideal, it is enough to produce momentum in the shorter term. It appears that support (the blue box) is stronger than was anticipated. The week's lowest volume came on Tuesday and it has continued to expand through the weekend as well (coinmarketcap.com/cu...oin/historical-data/).
With a clear bullish flag on the 6 hour chart, the expectation is for price to rise and breach the channel resistance that has been in place for two months. This should unlock bullish momentum as price targets the $7100 area which also places price near the 2.618 extension. Currently, price has established a higher low and a higher high, indicating a bullish trend. While RSI is nearing oversold, OBV is targeting its own horizontal resistance, a break above which should be quite bullish. Watch for price spread to increase and volume expands on a move up.
As I was writing this, price made the aforementioned move through resistance. Failure of the channel resistance to hold as support should see price falling toward the earlier expected $6150 level.
With a clear bullish flag on the 6 hour chart, the expectation is for price to rise and breach the channel resistance that has been in place for two months. This should unlock bullish momentum as price targets the $7100 area which also places price near the 2.618 extension. Currently, price has established a higher low and a higher high, indicating a bullish trend. While RSI is nearing oversold, OBV is targeting its own horizontal resistance, a break above which should be quite bullish. Watch for price spread to increase and volume expands on a move up.
As I was writing this, price made the aforementioned move through resistance. Failure of the channel resistance to hold as support should see price falling toward the earlier expected $6150 level.
Comment:
Coinbase Custody is now open and the implications are huge. Large institutions finally have access to legally-required custodian services which allows them to really get into crypto. This being as it is, we may have potentially seen the bottom of this cycle.
blog.coinbase.com/co...usiness-182c297d65d9
blog.coinbase.com/co...usiness-182c297d65d9
Tweezer bottoms on the weekly signals bullish reversal, at least for a bit. It's much too early to know if this current movement is the beginning of a move to new all time highs. A case can certainly be made for more downward movement at some point, however I believe the calls for price to hit sub-$4000 are without merit at this time. They appear to be wholly emotional with given support of such positions being previous price support levels.