The most representative timeframe to show results of the most recent technical analysis is 4H chart. Possible further Bitcoin's price action is quite positive let's prove it using 1 month scale.
Starting on 26th of October when Bitcoin's price was pumped to $10 584 we can define Fibonacci retracement levels which represent major resistance and support levels. As usual a natural corrective movement pushed the price to Fib 0.5 support level at $8 970 with a resistance of Fib 0.236 around $9 823. The momentum was so low that price managed to touch the resistance only twice thus the most price action occurred around support level which was a great sign of upcoming break down and start of a down trend. Two weeks later forecasted downtrend started on the 8th of November and lasted till the 21th of November with a sharp drop to $6 736. The most important is that price action broke down Fib 1 level this indicates Bitcoin starts to find support and should create an ascending channel with a supportive edge which is displayed at the chart. Such channel was found on the 25th of November and soon it became clear that Bitcoin is in a very bullish mood. Price action formed Inverse Head and Shoulders pattern on the downtrend which leads to global trend shift. Today was a very important day because upper edge of the triangle met mentioned lower supportive edge at a local resistance level of $7 636 which was successfully broke upward!
Summing up, Bitcoin's price have no resistance until Fib 0.786 at $8 046 while momentum power grow. There are now bearish hidden divergence according to price oscillator and the price is above EMA 20 and 50. Thus the resistance should be broken, while the price action is going to consolidate above $8 000 level. We forecast a moderate grow until $8 900 with natural corrections
Starting on 26th of October when Bitcoin's price was pumped to $10 584 we can define Fibonacci retracement levels which represent major resistance and support levels. As usual a natural corrective movement pushed the price to Fib 0.5 support level at $8 970 with a resistance of Fib 0.236 around $9 823. The momentum was so low that price managed to touch the resistance only twice thus the most price action occurred around support level which was a great sign of upcoming break down and start of a down trend. Two weeks later forecasted downtrend started on the 8th of November and lasted till the 21th of November with a sharp drop to $6 736. The most important is that price action broke down Fib 1 level this indicates Bitcoin starts to find support and should create an ascending channel with a supportive edge which is displayed at the chart. Such channel was found on the 25th of November and soon it became clear that Bitcoin is in a very bullish mood. Price action formed Inverse Head and Shoulders pattern on the downtrend which leads to global trend shift. Today was a very important day because upper edge of the triangle met mentioned lower supportive edge at a local resistance level of $7 636 which was successfully broke upward!
Summing up, Bitcoin's price have no resistance until Fib 0.786 at $8 046 while momentum power grow. There are now bearish hidden divergence according to price oscillator and the price is above EMA 20 and 50. Thus the resistance should be broken, while the price action is going to consolidate above $8 000 level. We forecast a moderate grow until $8 900 with natural corrections
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