Price of the bitcoin has shown us a super bullish price action as the price is testing the white resistance trend line which is the area of previous All Time High too. A huge bounce since the $16188 region gives the momentum for the price to reach this area again.
At current rate, there is a lot of uncertainty occurring as we are trying to breaks above the white resistance zone which is the area of ATH too. The main reason for this action is because of there is lack of historical price action above this area. We don't know where will the price go after breaks above this zone, where the point of interest and where the consolidation will be. All we can do for now is to see the psychological round number or we can see the fibonacci extension to project the possible resistance in the future.
Based on the fibonacci extension that I draw here, I assume the first wave started at the March 12th, 2020 and had a peak at August 2020 with the short correction bottomed at September 7th, 2020. Right after the price had a bounce, it formed a 3rd wave which usually is the longest comparing the other 2 impulse waves. Based on my experience, the 3rd wave mostly peaked at 1.618 fibonacci extension level. That's why when the price is able to breaks above this white resistance zone, I'll assume the $23985 as the ideal level to touches in the future.
The other supporting factor is on the MACD and RSI as the most reliable indicators I've ever used. From the MACD perspective, we see a ticks up toward the positive side on this 12 hours time frame. Not just that, the MA line is having a golden crossover too which giving us a huge signals of potential continuation toward the upside.
From the RSI perspective, we can see that the RSI has trended outside the neutral zone and it's now having a huge breaks out to enter the bullish zone. For now, I don't see any reason for us to short the market even we know that the price is testing the white resistance zone as the All Time high range. The candle looks so bullish and there is a huge pressure for the bears. It's not wise to enter a short position right now.
At current rate, there is a lot of uncertainty occurring as we are trying to breaks above the white resistance zone which is the area of ATH too. The main reason for this action is because of there is lack of historical price action above this area. We don't know where will the price go after breaks above this zone, where the point of interest and where the consolidation will be. All we can do for now is to see the psychological round number or we can see the fibonacci extension to project the possible resistance in the future.
Based on the fibonacci extension that I draw here, I assume the first wave started at the March 12th, 2020 and had a peak at August 2020 with the short correction bottomed at September 7th, 2020. Right after the price had a bounce, it formed a 3rd wave which usually is the longest comparing the other 2 impulse waves. Based on my experience, the 3rd wave mostly peaked at 1.618 fibonacci extension level. That's why when the price is able to breaks above this white resistance zone, I'll assume the $23985 as the ideal level to touches in the future.
The other supporting factor is on the MACD and RSI as the most reliable indicators I've ever used. From the MACD perspective, we see a ticks up toward the positive side on this 12 hours time frame. Not just that, the MA line is having a golden crossover too which giving us a huge signals of potential continuation toward the upside.
From the RSI perspective, we can see that the RSI has trended outside the neutral zone and it's now having a huge breaks out to enter the bullish zone. For now, I don't see any reason for us to short the market even we know that the price is testing the white resistance zone as the All Time high range. The candle looks so bullish and there is a huge pressure for the bears. It's not wise to enter a short position right now.
