Bitcoin - Road map of possibilities for the next few days!
Inverted Head and Shoulders forming on the hourly chart, OBV starting to lift suggesting capital inflow and we may bounce from support of the pink channel we've been following, at least in the short term.
The market could go either way but personally, I'm leaning towards bearish until we break $7400. Not expecting much momentum to the upside since the bears seem to have the upper hand since failing to break $6800 recently, which has been a strong level of resistance through out the month of September. A drop from there will probably result in a retest of $6100 and potentially a retest of market structure between $5750 and $6000 should $6100 not hold.
If the bulls do manage to get back over $6600 with strong volume and momentum, however, we can expect to break through trend line resistance at $6750 to retest $6900 with an extension to retest resistance at the top of the pink channel at around $7050.
Ultimately the market will be deciding very soon and we will all have a bit more clarity after a boring few weeks of consolidation and market confusion.
I believe we need to break market structure first and establish a new yearly low if we're going to be seeing any meaningful rally by the end of 2018. There probably won't be any ETF this year for a number of regulatory reasons but also because more time is needed for banks and institutional investors to educate themselves before the SEC will risk regulating their exposure.
Good luck and hope you choose the best route!
Previous analysis:
The market could go either way but personally, I'm leaning towards bearish until we break $7400. Not expecting much momentum to the upside since the bears seem to have the upper hand since failing to break $6800 recently, which has been a strong level of resistance through out the month of September. A drop from there will probably result in a retest of $6100 and potentially a retest of market structure between $5750 and $6000 should $6100 not hold.
If the bulls do manage to get back over $6600 with strong volume and momentum, however, we can expect to break through trend line resistance at $6750 to retest $6900 with an extension to retest resistance at the top of the pink channel at around $7050.
Ultimately the market will be deciding very soon and we will all have a bit more clarity after a boring few weeks of consolidation and market confusion.
I believe we need to break market structure first and establish a new yearly low if we're going to be seeing any meaningful rally by the end of 2018. There probably won't be any ETF this year for a number of regulatory reasons but also because more time is needed for banks and institutional investors to educate themselves before the SEC will risk regulating their exposure.
Good luck and hope you choose the best route!
Previous analysis:
Comment:
Continuing from previous analysis, we're at channel resistance on 1hr chart. On daily chart we broke above MA50, now just to break channel resistance & MA100 for bulls to take the reigns. Otherwise drop back to channel support. Overbought so potentially 1 more test of channel support.
Comment:
We have broken above the white channel resistance of the 1 hour chart and have been following the yellow channel on the 15 minute chart where a candle opened above the hourly chart's white channel. Still need to break above the yellow channel resistance otherwise will retest the white channel support (previous resistance) and if that doesn't hold there should be a drop to the yellow channel support. Drop below this is confirmation of a downtrend to the white channel support around $6250. On the daily chart MA50 currently acting as resistance, still need to break above this.
