Support/Resistance areas to watch for Bitcoin
Hey guys, another update on Bitcoin here. This time, I am doing my analysis purely off trend lines, which has been pretty reliable for my predictions in the past.
On the chart we have several resistance and support lines.
The red resistance line above is formed from the ATH of 19.7k down to 17k and the last contact point at 11.7k.
This is the most importance resistance line that the price must break through in order to put an end to the downtrend bear market started in December.
The next resistance line below the red line, is the blue line that is formed from 17k to 11.7k and beyond.
The only time this line was compromised was when BTC formed a double top on March 2nd to March 7th.
After the price broke back down below this line, it clearly was acting as strong resistance again as you can see the price bouncing off this line several times after.
Looking below, we see a green support line that is formed from 5.3k back in November 11th, through the 5.9k bottom on February 6th.
At first this support line seemed too insignificant to bother drawing on the chart. However, recently it played a pretty important role as the price bounced off this line on April 1st and had a nice little rally up to 7.5k.
Now we are approaching that line once again and it is very possible that we see another bounce up before falling. However, I don’t think it will hold up this time as more and more people are still eyeing the 5.7k-6k range for the real bounce.
The orange horizontal line is drawn on the 5.9k low point hit in February. It is possible the price gets near this level but doesn’t bounce exactly on it. I could see the price dipping below and taking out people’s stop loss.
The black trend line is a newer support line that has been formed from the reaction lows starting from the end of February to present day.
Bitcoin has yet to come back down to touch this line again, and I think that we are due for a bounce off this line very soon.
This important area for a bounce is highlighted by the yellow ellipse. As you can see I have drawn 2 potential price targets to reach after the bounce. T1 shows a bounce off the blue resistance line since it has been acting as fairly strong resistance lately. T2 shows a continuation of the price to reach the strongest, most resilient resistance line. I don’t believe we will be out of the bear downtrend even after a bounce at 5.7k-6k range, and this is why I have drawn red arrows pointing back down. Keep in mind the bounce from 5.7k-6k zone will be very strong and it is possible that it pushes us out of even the strongest resistance line.
These are obviously just my predicted pathways, and any scenario can theoretically play out from here.
But the trend lines should still play a very important role in determining potential reversal areas.
So rather than expecting the price to follow my projections exactly, use these support/resistance areas as a guide for findings tops and bottoms.
Thanks for taking the time to read my analysis. Please hit like if you found this useful. Good luck trading =)
On the chart we have several resistance and support lines.
The red resistance line above is formed from the ATH of 19.7k down to 17k and the last contact point at 11.7k.
This is the most importance resistance line that the price must break through in order to put an end to the downtrend bear market started in December.
The next resistance line below the red line, is the blue line that is formed from 17k to 11.7k and beyond.
The only time this line was compromised was when BTC formed a double top on March 2nd to March 7th.
After the price broke back down below this line, it clearly was acting as strong resistance again as you can see the price bouncing off this line several times after.
Looking below, we see a green support line that is formed from 5.3k back in November 11th, through the 5.9k bottom on February 6th.
At first this support line seemed too insignificant to bother drawing on the chart. However, recently it played a pretty important role as the price bounced off this line on April 1st and had a nice little rally up to 7.5k.
Now we are approaching that line once again and it is very possible that we see another bounce up before falling. However, I don’t think it will hold up this time as more and more people are still eyeing the 5.7k-6k range for the real bounce.
The orange horizontal line is drawn on the 5.9k low point hit in February. It is possible the price gets near this level but doesn’t bounce exactly on it. I could see the price dipping below and taking out people’s stop loss.
The black trend line is a newer support line that has been formed from the reaction lows starting from the end of February to present day.
Bitcoin has yet to come back down to touch this line again, and I think that we are due for a bounce off this line very soon.
This important area for a bounce is highlighted by the yellow ellipse. As you can see I have drawn 2 potential price targets to reach after the bounce. T1 shows a bounce off the blue resistance line since it has been acting as fairly strong resistance lately. T2 shows a continuation of the price to reach the strongest, most resilient resistance line. I don’t believe we will be out of the bear downtrend even after a bounce at 5.7k-6k range, and this is why I have drawn red arrows pointing back down. Keep in mind the bounce from 5.7k-6k zone will be very strong and it is possible that it pushes us out of even the strongest resistance line.
These are obviously just my predicted pathways, and any scenario can theoretically play out from here.
But the trend lines should still play a very important role in determining potential reversal areas.
So rather than expecting the price to follow my projections exactly, use these support/resistance areas as a guide for findings tops and bottoms.
Thanks for taking the time to read my analysis. Please hit like if you found this useful. Good luck trading =)
Comment:
Okay guys, so looks like Bitcoin wants to try for one more leg up before falling. This leg up might be a strong one, but again let's focus on the trend lines for targets and not so much where I draw my arrows ;) Here's an update of potential pathways Bitcoin will take:
Comment:
Another update. Looks like there's one more hurdle we need to get through on the short-term:
Comment:
T1 has been reached. If this blue resistance-turned-support line can hold then BTC will set its sights on T2
Trade closed: target reached:
Both targets reached! Thanks for your support guys =)