Hello traders,
After the bounce from $3700 regions, Bitcoin is testing $3850 again, where we saw 7 days of sideways movement last week. Although we are starting to see bull flag, I need to warn you guys that $4000 will be extremely heavy resistance for Bitcoin and we may need to test low $3000 level again.
Looking at weekly chart, we see that weekly 50 MA is converging, and guess where it is at right now? Exactly around $4200 region where we saw Bitcoin being tested and got rejected twice. If you look at the longer time frame, this weekly 50MA has been the biggest resistance, as we got rejected from this line almost 6 times in 14 months. This line can't be ignored that easily and I won't be surprised that we see huge selling from that point. Technical speaking, Bitcoin is still within this bearish wedge as the volume is decreasing since the bearish breakout in Oct 2018, and if Bitcoin can't go above $4200, we have a very high chance of going further down again.
Now let's go back to the 4-hour chart. We see bull flag is starting to form, and as long as it stays above the red box region, there is a very high probablity that we will see bullish breakout in next few days. There is a stiff resistance around $4000, but I expected to scale up to $4200. This level is very crucial because most of the Fibonacci level do overlap some of the key support and resistance levels. I just can't express how important $4200 level is and I urge you to think your trading place after you read this post, because I can feel that very heinous move is coming in next 2 months.
Happy trading!
After the bounce from $3700 regions, Bitcoin is testing $3850 again, where we saw 7 days of sideways movement last week. Although we are starting to see bull flag, I need to warn you guys that $4000 will be extremely heavy resistance for Bitcoin and we may need to test low $3000 level again.
Looking at weekly chart, we see that weekly 50 MA is converging, and guess where it is at right now? Exactly around $4200 region where we saw Bitcoin being tested and got rejected twice. If you look at the longer time frame, this weekly 50MA has been the biggest resistance, as we got rejected from this line almost 6 times in 14 months. This line can't be ignored that easily and I won't be surprised that we see huge selling from that point. Technical speaking, Bitcoin is still within this bearish wedge as the volume is decreasing since the bearish breakout in Oct 2018, and if Bitcoin can't go above $4200, we have a very high chance of going further down again.
Now let's go back to the 4-hour chart. We see bull flag is starting to form, and as long as it stays above the red box region, there is a very high probablity that we will see bullish breakout in next few days. There is a stiff resistance around $4000, but I expected to scale up to $4200. This level is very crucial because most of the Fibonacci level do overlap some of the key support and resistance levels. I just can't express how important $4200 level is and I urge you to think your trading place after you read this post, because I can feel that very heinous move is coming in next 2 months.
Happy trading!
