Bitcoin has had a massive sell-off from its high point in December and may be showing signs of a strong reversal.
Aggressive price action began in November where it really started to go vertical so I began my Fib Retracement from there. We've since then corrected a total 100% from that point, and the currency showed a strong bounce from that point almost on the nose.
MACD, RSI, and Stochs all show a bounce from the 100% point of the Fib line. This line can be considered strong support. BTC has contained itself in the downtrend channel which has proven hard to break. These are key resistance levels to break which may signal the reversal. A break through the channel resistance with volume, and price action hitting ~9,100 - 9,200 would be a show of strength.
For those looking to take on some risk, an entry on the next swing upwards would be safe with a stop-loss around 7,250. Otherwise, place a buy just in front of 9,000 when the breakout occurs. Potential bounce could force a move upwards of $13,000.
Happy trading.
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Chart is playing out beautifully. Lots of momentum coming through over the last few days. Would like to see more of a vertical movement with higher volume but the movement is still very much intact.
What is your thought about going GFK on BTC?