Bitcoin: We're gonna ri-ri-ri-ri-rise til we fall!
Bitcoin is in a bullish pennant and we have RSI hidden bullish divergence on the 4 hour chart. BTC has found support at $6560 (0.618 fib) and we will probably have some sideways action until we have a breakout to the upside within the next day. Volume has been dropping steadily so expecting capitulation once we get closer to our pennant support. The break out should coincide with a break above the Daily MA50 and the break above the pennant resistance should take BTCUSD above the Daily MA100 at around $6750.
We can expect strong buying pressure once we break through the blue trend line which connects the peaks on 24 July, 4 September and 28 September. Price should then carry enough momentum to break the heavy $6800 resistance and should then reach $7026 at 1.272 fib with an extension to $7127 at 1.414 fib. $7127 also coincides with the large yellow trend line resistance which connects the peaks at 05 May and 24 July. A close above this yellow trend line above $7272 at 1.618 fib should spark a short term rally, however this will be a strong level of resistance given its fib positioning and price could turn from there for a retest of $6800 support. This yellow trend line also serves as resistance for the large bearish descending triangle playing out on the weekly chart.
Remember the bear market is not over until BTC is over the daily MA200 so take caution when everyone starts piling in to the 4th quarter ''bull run".
Good luck and happy trading!
Previous analysis:
We can expect strong buying pressure once we break through the blue trend line which connects the peaks on 24 July, 4 September and 28 September. Price should then carry enough momentum to break the heavy $6800 resistance and should then reach $7026 at 1.272 fib with an extension to $7127 at 1.414 fib. $7127 also coincides with the large yellow trend line resistance which connects the peaks at 05 May and 24 July. A close above this yellow trend line above $7272 at 1.618 fib should spark a short term rally, however this will be a strong level of resistance given its fib positioning and price could turn from there for a retest of $6800 support. This yellow trend line also serves as resistance for the large bearish descending triangle playing out on the weekly chart.
Remember the bear market is not over until BTC is over the daily MA200 so take caution when everyone starts piling in to the 4th quarter ''bull run".
Good luck and happy trading!
Previous analysis:
Comment:
Bullish pennant may also be an ascending triangle, both bullish.
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We found support above the MA50 on the daily chart. Now just to break through MA100 at $6750 if we can just get above $6660. Watch for the break out. Market doesn't have much time left to choose a direction.
Comment:
Classic bullish divergence on the 1 hour chart and bullish ascending triangle. Should be a short term break up to the top of the yellow channel and potentially towards the $6800 heavy resistance.
Comment:
Hidden bullish divergence. Should break out of the triangle to the upside to test $6660 as our next leg up.
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