BTC shows conflicting signals but the path looks to go higher
Fib's:
White: Full
Yellow: Prior low extension to last high
Red: February's high retracement to prior low
ROI are calculated from when the price was $8275.
When reviewing the longer term trend lines and support/resistance zones the reward to risk ratio for BTC is favorable. A lot of things can happen and here are two scenarios I believe are most likely to occur:
1. BTC is consolidating before it retests the top of the symmetrical triangle ($9200) for an 11% ROI. It could reverse at the first resistance zone, then again at the first support zone before heading to the top of the triangle.
2. BTC drops to the middle support zone ($7794-7842) before retesting the top of the symmetrical triangle. At current price, 6.5% ROI. If bought from the support zone, 13%ROI.
The RSI is nearing support so if BTC were to drop, it shouldn’t be much if it holds up. Currently BTC is trading above the 50MA but has been pierced twice in the last few days . There’s a bear flag, however there’s a hammer forming to end today’s candle.
White: Full
Yellow: Prior low extension to last high
Red: February's high retracement to prior low
ROI are calculated from when the price was $8275.
When reviewing the longer term trend lines and support/resistance zones the reward to risk ratio for BTC is favorable. A lot of things can happen and here are two scenarios I believe are most likely to occur:
1. BTC is consolidating before it retests the top of the symmetrical triangle ($9200) for an 11% ROI. It could reverse at the first resistance zone, then again at the first support zone before heading to the top of the triangle.
2. BTC drops to the middle support zone ($7794-7842) before retesting the top of the symmetrical triangle. At current price, 6.5% ROI. If bought from the support zone, 13%ROI.
The RSI is nearing support so if BTC were to drop, it shouldn’t be much if it holds up. Currently BTC is trading above the 50MA but has been pierced twice in the last few days . There’s a bear flag, however there’s a hammer forming to end today’s candle.
Trade active:
BTC reversed before testing the middle support, right on the bottom RSI trendline zone at $7932. Currently it's trading above the first support zone and if it holds it should continue upwards to test the first zone of resistance at $8613.
Comment:
My mistake, the RSI reversed off of the *480's* bottom trendline NOT the daily's (was looking at the wrong chart while writing this). As a result, it's probable for BTC to continue down to retest middle support level before heading upwards to retest resistance.
Trade active:
BTC has now contacted the RSI bottom trendline. Potential for a reversal here.