BITCOIN - About The Strong Resistance, Long-Term Perspective!
Things have a little bit calmed down after that pump to the major mid-term target area ~$5,800, and now there is a correct time to look at the charts.
I mentioned this mid-term key area almost after the pump from the $4,000 to the $5,000 and now, after multiple attempts, the "clean" area is filled, the price has reached into the previous support levels which now became resistances. This area was a major support level on the last year, multiple rejections around the $6,000 levels. Let's dig a little bit deeper into this level, the gray area.
The Gray Area at $5,777 - $6,106
The gray area consists of multiple strong levels. There are two major price levels and if we count also that mentioned round number $6,000 then we get three.
The area which is between the orange lines: $5,777-$5,900
This area is working currently as a resistance and as a first bigger obstacle to make another move upwards. In this area we have three Monthly lows from the past year (2018):
- June low $5,777
- February low $5,873
- August low $5,900
There are also two major Fibonacci retracement levels:
- 38% retracement level: pulled from the 2018 May high to the 2018 low point.
- 62% golden ratio: pulled from the 2018 September high to the 2018 low point.
So, the first obstacle is already really strong but that's not all!
The round number, just after that orange area, $6,000
Historically, it has played a very significant role in price action. Multiple times from the last year it was on our watch list as a major support level and now, it becomes also into our watch list but as the role reversal works, it becomes on our watchlist as a resistance. So, the second important criteria in this gray area but that's not all either!
The area which is between blue lines: $6,033 - $6,106
Between those numbers, we have another three set of Monthly lows which now should act as resistance levels:
- July low $6,075
- September low $6,106
- October low $6,033
As you see, the gray area consists of 6 Monthly Lows from the last year, 2018. 6 times it has worked as a major monthly support level and if we add here also this significant round number, plus some perfect Fibonacci retracement levels then this area is a game changer.
A break above the gray area will be a really positive sign for a long-term view. Yes, the $6,500 is also a strong area, but after the breakout above the $6,106 should trigger some powerful bullish price action. There starts to come into the watchlist previous long-term lower highs which now may become cracked with new higher highs and etc. but do not rush too much ahead because currently, the area worked first time as a resistance, remember, it was the support multiple-multiple times. We have also a pretty strong RSI Divergence on the Daily chart, and this divergence is on the super-strong area and to me, looks like the correction may start soon!
Here comes the conclusion; great, the price reached finally into the area which should play a significant role in the long-term perspective. As said, it is great but to make any mid-term BUY trades, here just under the super-strong resistance, would be a huge mistake.
Now you know, that the upwards obstacle is really strong and meanwhile the price almost needs a slight correction downwards to prepare for it to make another push through the gray area. If the correction starts then obviously, I will give to you technically good areas where you can enter into the market and I can give some mid-term or short-term strong bounce areas but considering the long-term perspective, the gray area ($5,777 - $6,106) is the key!!
"The consistency you seek is in your mind, not in the markets."
– Mark Douglas
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice week,
Cheers!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
I mentioned this mid-term key area almost after the pump from the $4,000 to the $5,000 and now, after multiple attempts, the "clean" area is filled, the price has reached into the previous support levels which now became resistances. This area was a major support level on the last year, multiple rejections around the $6,000 levels. Let's dig a little bit deeper into this level, the gray area.
The Gray Area at $5,777 - $6,106
The gray area consists of multiple strong levels. There are two major price levels and if we count also that mentioned round number $6,000 then we get three.
The area which is between the orange lines: $5,777-$5,900
This area is working currently as a resistance and as a first bigger obstacle to make another move upwards. In this area we have three Monthly lows from the past year (2018):
- June low $5,777
- February low $5,873
- August low $5,900
There are also two major Fibonacci retracement levels:
- 38% retracement level: pulled from the 2018 May high to the 2018 low point.
- 62% golden ratio: pulled from the 2018 September high to the 2018 low point.
So, the first obstacle is already really strong but that's not all!
The round number, just after that orange area, $6,000
Historically, it has played a very significant role in price action. Multiple times from the last year it was on our watch list as a major support level and now, it becomes also into our watch list but as the role reversal works, it becomes on our watchlist as a resistance. So, the second important criteria in this gray area but that's not all either!
The area which is between blue lines: $6,033 - $6,106
Between those numbers, we have another three set of Monthly lows which now should act as resistance levels:
- July low $6,075
- September low $6,106
- October low $6,033
As you see, the gray area consists of 6 Monthly Lows from the last year, 2018. 6 times it has worked as a major monthly support level and if we add here also this significant round number, plus some perfect Fibonacci retracement levels then this area is a game changer.
A break above the gray area will be a really positive sign for a long-term view. Yes, the $6,500 is also a strong area, but after the breakout above the $6,106 should trigger some powerful bullish price action. There starts to come into the watchlist previous long-term lower highs which now may become cracked with new higher highs and etc. but do not rush too much ahead because currently, the area worked first time as a resistance, remember, it was the support multiple-multiple times. We have also a pretty strong RSI Divergence on the Daily chart, and this divergence is on the super-strong area and to me, looks like the correction may start soon!
Here comes the conclusion; great, the price reached finally into the area which should play a significant role in the long-term perspective. As said, it is great but to make any mid-term BUY trades, here just under the super-strong resistance, would be a huge mistake.
Now you know, that the upwards obstacle is really strong and meanwhile the price almost needs a slight correction downwards to prepare for it to make another push through the gray area. If the correction starts then obviously, I will give to you technically good areas where you can enter into the market and I can give some mid-term or short-term strong bounce areas but considering the long-term perspective, the gray area ($5,777 - $6,106) is the key!!
"The consistency you seek is in your mind, not in the markets."
– Mark Douglas
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice week,
Cheers!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Comment:
New BTC (SpaceX) analysis :)
Do not hesitate to click the "LIKE" button!
Currently, looks like we have made a little breakout upwards from the triangle. This breakout and altcoins tiny pump could be indications that we might see a bounce above the June low, which is worked as a current resistance, to the 2018 August and Feb. lows, around $5,900.
Do not forget to support my small effort by hitting the "LIKE" button!
Thank you very much!