Hello Tradingview community, what a week this has been! A flash in the pan move or is there still way more fuel left? Let's see.
Firstly if you read my previous analysis you will see how we moved past 5800 and low 6000's levels reaching the 7200 to 7400 zone which for me is the 'mother of all resistance zones' right now. Why? Because it was the last major resistance zone of early November 2017 when the BTC rally stalled and looked to be over. Also it's the last major top of 2018. In between it also acted as supoport/resistance at various times. And finally look at my BTC to silver comparison. It's there as well.
So what have we been seeing and what are we seeing? Well throughout april and early may nearly everyone was predicting major falls across crypto assets. There were several scandals and only one piece of positive news (Fidelity). However I looked at it differently. Have a look at the chart, the higher lows in blue. BTC rallied by 30% over the course of one week from late march to early april. This was followed by a small correction then price went up. Bitfinex/Tether news hit, even smaller correction then up. Binance hack....hardly any correction then up. We had very strong bullish momentum and all bad news was being shrugged off. This is a sign of strength, not weakness. However the speed of the rally was really, really unexpected. Low 6000's resistance zone which held for almost the entire 2018 was taken out within hours. So where are we now?
Price went kinda parabolic and hit my 7200 to 7400 zone where we saw a drop (hardly unexpected) towards the 38.2% Fibonacci (second black line). In the meantime 23.6% offered no resistance (first black line). From here we have two possible scenarios, we go up or we keep falling. If we keep falling my feeling is that we will take out the 50% (third black line) and stop on the 61.8% which coincides with other major resistance levels across the low 6000's. This would be logical. Then again nothing in crypto seems to be logical :-)
On 1 day charts everything is overbought, looking at the 4 hour momentum is bearish but then again that's no surprise. Stoch is falling, MACD about to make bearish crossover, RSI at 50. At this stage it's best to sit and wait on this one allowing a trend to develop. I would wait to see how the next couple of 4 hour candle closes go. If price manages to regain and close above 4hour EMA (currently hovering just below 7100) then this will be a bullish sign and will also prevent the MACD from making a bearish crossover. Right now we have made a strong bounce from the Fib so there are buyers in this market. There are still plenty of bears left to slaughter :-)
If we do actually manage to take out the 7200 to 7400 zone then the next resistance zone is around the 8300 mark.
Remember always DYOR!!!
Firstly if you read my previous analysis you will see how we moved past 5800 and low 6000's levels reaching the 7200 to 7400 zone which for me is the 'mother of all resistance zones' right now. Why? Because it was the last major resistance zone of early November 2017 when the BTC rally stalled and looked to be over. Also it's the last major top of 2018. In between it also acted as supoport/resistance at various times. And finally look at my BTC to silver comparison. It's there as well.
So what have we been seeing and what are we seeing? Well throughout april and early may nearly everyone was predicting major falls across crypto assets. There were several scandals and only one piece of positive news (Fidelity). However I looked at it differently. Have a look at the chart, the higher lows in blue. BTC rallied by 30% over the course of one week from late march to early april. This was followed by a small correction then price went up. Bitfinex/Tether news hit, even smaller correction then up. Binance hack....hardly any correction then up. We had very strong bullish momentum and all bad news was being shrugged off. This is a sign of strength, not weakness. However the speed of the rally was really, really unexpected. Low 6000's resistance zone which held for almost the entire 2018 was taken out within hours. So where are we now?
Price went kinda parabolic and hit my 7200 to 7400 zone where we saw a drop (hardly unexpected) towards the 38.2% Fibonacci (second black line). In the meantime 23.6% offered no resistance (first black line). From here we have two possible scenarios, we go up or we keep falling. If we keep falling my feeling is that we will take out the 50% (third black line) and stop on the 61.8% which coincides with other major resistance levels across the low 6000's. This would be logical. Then again nothing in crypto seems to be logical :-)
On 1 day charts everything is overbought, looking at the 4 hour momentum is bearish but then again that's no surprise. Stoch is falling, MACD about to make bearish crossover, RSI at 50. At this stage it's best to sit and wait on this one allowing a trend to develop. I would wait to see how the next couple of 4 hour candle closes go. If price manages to regain and close above 4hour EMA (currently hovering just below 7100) then this will be a bullish sign and will also prevent the MACD from making a bearish crossover. Right now we have made a strong bounce from the Fib so there are buyers in this market. There are still plenty of bears left to slaughter :-)
If we do actually manage to take out the 7200 to 7400 zone then the next resistance zone is around the 8300 mark.
Remember always DYOR!!!