Hello traders,
Finally I finished my 3 weeks vacation and it is time to get back to trading.
Looking at the 4 hour chart for bitcoin, we see that beautiful equilibrium tightening pattern is forming and Bitcoin is ready for the potential breakout. However, I am just a little bit concerned of how Bitcoin is moving in last 48 hours. You see, $6585 has been a very heavy resistance in past few months, and I am actually surprised that Bitcoin is not going to confirm that level as a support. But some of the indicators are telling me that we will see some bull actions will commence in next couple days (Stoch RSI crossover, and MACD is about to crossover)
Anyways, in case of bull breakout, there are few key level to watch:
1) $6900-$6950
If we connect highs from July to September, we see that it overlaps with the minor resistance (yellow box) that I drew in the chart. Most likely Bitcoin will fail to break that level and retrace to $6800.
3) $7400
Bulls have successfully defended $6100 (higher low), so the overall goal for upcoming is to get higher high in order to see bull trend reversal. There is a minor resistance at $7150, and I am confident that Bitcoin will surpass this level without any problems. If we can get higher high in this rally, the target is approximately $7600 where we see some resistance.
Happy trading!
Finally I finished my 3 weeks vacation and it is time to get back to trading.
Looking at the 4 hour chart for bitcoin, we see that beautiful equilibrium tightening pattern is forming and Bitcoin is ready for the potential breakout. However, I am just a little bit concerned of how Bitcoin is moving in last 48 hours. You see, $6585 has been a very heavy resistance in past few months, and I am actually surprised that Bitcoin is not going to confirm that level as a support. But some of the indicators are telling me that we will see some bull actions will commence in next couple days (Stoch RSI crossover, and MACD is about to crossover)
Anyways, in case of bull breakout, there are few key level to watch:
1) $6900-$6950
If we connect highs from July to September, we see that it overlaps with the minor resistance (yellow box) that I drew in the chart. Most likely Bitcoin will fail to break that level and retrace to $6800.
3) $7400
Bulls have successfully defended $6100 (higher low), so the overall goal for upcoming is to get higher high in order to see bull trend reversal. There is a minor resistance at $7150, and I am confident that Bitcoin will surpass this level without any problems. If we can get higher high in this rally, the target is approximately $7600 where we see some resistance.
Happy trading!
Comment:
Huh interesting. Right after I posted this, Bitcoin decided to go $6580! Chart never lies!
