The parabolic phase of the past week has brought some interesting technical indicators to be interpreted.
The clear cup and handle pattern is indicative of a bottom.
However, trend lines show support turned resistance at the 8000usd level and could prove strong resistance.
78.6% Fib retracement of major swing highs and lows indicate levels around 6500 as support which correlates with previous trends.
A retracement to around this level would be in the middle of the 5500 - 8000 support and resistance levels and could create sideways trading in this channel until a breakout.
The support trend line formed from the bottom of the cup and handle pattern could create an ascending wedge with this sideways channel.
A break downwards could see a fall to the 3000 support level or even down to 1800 following the larger bear trend line.
Current RSI levels are highest since December 2017 bull run and fear and greed indexes are highest ever recorded making a pullback seem more likely than an upwards break.
A pullback to the 5500-6500 levels seems most likely before further growth.
The clear cup and handle pattern is indicative of a bottom.
However, trend lines show support turned resistance at the 8000usd level and could prove strong resistance.
78.6% Fib retracement of major swing highs and lows indicate levels around 6500 as support which correlates with previous trends.
A retracement to around this level would be in the middle of the 5500 - 8000 support and resistance levels and could create sideways trading in this channel until a breakout.
The support trend line formed from the bottom of the cup and handle pattern could create an ascending wedge with this sideways channel.
A break downwards could see a fall to the 3000 support level or even down to 1800 following the larger bear trend line.
Current RSI levels are highest since December 2017 bull run and fear and greed indexes are highest ever recorded making a pullback seem more likely than an upwards break.
A pullback to the 5500-6500 levels seems most likely before further growth.
Comment:
If 8000 is significantly cleared, 9500 could be the next resistance, but 10000 is likely to be stronger.