Looks like Bitcoin is unable to make another push up right now, doesn’t seem like buyers are that interested in buying at these levels. The huge jump in price the other day is looking more and more like a short-covering rally and not a true start of a bull run. It’s probably too soon to really tell, so let’s just continue to look at the chart and understand why the price stopped at 8200.
If you look at the chart you can clearly see Bitcoin stopped exactly at the 38.2% fib retracement level. In fact, the price dropped then rallied back up to test that same fib level again before falling. Currently it looks like it wants to move back up, so let’s see if it’s even able to get through the .382 fib. If it’s unable to get through, a fall down to the blue support line below is very likely, and it might even fall right on the convergence of this blue support trend line with the .236 fib level.
This level is very important to hold if we want to continue moving up and continue what initially appeared as the start of a new bull run. I think a retrace back to this level would actually be very healthy for this rally to continue, as long as that support can hold.
If the price pushes through the .382 fib level, we have 2 resistances above. The pink line was the support formed from 2.8k back in September through the Feb low of 5.9k, and it is now acting as resistance.
The other resistance line is the red line formed from the ATH 19.7k down to the next reaction high at 11.7k. This will be the toughest resistance as I’ve mentioned in my other ideas.
Right now, trying to guess where the price is going is basically just gambling. Sure, we have boundaries set by these trend lines and fib levels, but we have no clear indication of price direction right now.
Stay tuned!
If you look at the chart you can clearly see Bitcoin stopped exactly at the 38.2% fib retracement level. In fact, the price dropped then rallied back up to test that same fib level again before falling. Currently it looks like it wants to move back up, so let’s see if it’s even able to get through the .382 fib. If it’s unable to get through, a fall down to the blue support line below is very likely, and it might even fall right on the convergence of this blue support trend line with the .236 fib level.
This level is very important to hold if we want to continue moving up and continue what initially appeared as the start of a new bull run. I think a retrace back to this level would actually be very healthy for this rally to continue, as long as that support can hold.
If the price pushes through the .382 fib level, we have 2 resistances above. The pink line was the support formed from 2.8k back in September through the Feb low of 5.9k, and it is now acting as resistance.
The other resistance line is the red line formed from the ATH 19.7k down to the next reaction high at 11.7k. This will be the toughest resistance as I’ve mentioned in my other ideas.
Right now, trying to guess where the price is going is basically just gambling. Sure, we have boundaries set by these trend lines and fib levels, but we have no clear indication of price direction right now.
Stay tuned!