Checking the four hour chart on Bitfinex for Bitcoin, the market looks very oversold.
Early this morning May 12th, eastern time zone in United States, BTC broke below 20 on the RSI four hour chart. This is only the third time in the past year this has happened.
The first time RSI was below 20 was 9/14. The market proceeded to drop another 7% in the following 12 hours after this RSI reading but then went on a tear from 2980 to 7900 in less than two months. Bullish divergence was evident during this first dip below 20 for the RSI.
The second time this happened in the past year was 1/17 and the market went lower in the next four hour interval by about 4% then went on a three day ripper rallying 41% off the lows.
I would take this information coupled with a retracement to the exact 50% Fibonacci level of the recent move from 6425 to 9990 as a very bullish sign. Also take into account the Consensus 2018 blockchain technology summit set to kick off on Monday the 14th.
This confluence of information leads me to believe the crypto market is about to become elevated.
The next resistance levels in BTC I am looking for are 8629, 8972 (Fibonacci level of entire downward move from 19891 to 6000), 9149, 10000 (should break that next time testing it in my opinion), and beyond that 11300, 12950, 14620, 16660 and then the all time high of 19990.
Support levels would be 7770, 7170, 6600, 6000, 5400, 4900, 4200, 3600 and 3000.
Early this morning May 12th, eastern time zone in United States, BTC broke below 20 on the RSI four hour chart. This is only the third time in the past year this has happened.
The first time RSI was below 20 was 9/14. The market proceeded to drop another 7% in the following 12 hours after this RSI reading but then went on a tear from 2980 to 7900 in less than two months. Bullish divergence was evident during this first dip below 20 for the RSI.
The second time this happened in the past year was 1/17 and the market went lower in the next four hour interval by about 4% then went on a three day ripper rallying 41% off the lows.
I would take this information coupled with a retracement to the exact 50% Fibonacci level of the recent move from 6425 to 9990 as a very bullish sign. Also take into account the Consensus 2018 blockchain technology summit set to kick off on Monday the 14th.
This confluence of information leads me to believe the crypto market is about to become elevated.
The next resistance levels in BTC I am looking for are 8629, 8972 (Fibonacci level of entire downward move from 19891 to 6000), 9149, 10000 (should break that next time testing it in my opinion), and beyond that 11300, 12950, 14620, 16660 and then the all time high of 19990.
Support levels would be 7770, 7170, 6600, 6000, 5400, 4900, 4200, 3600 and 3000.