Good morning, traders. Bitcoin's price continued to grind up over night to a high of $11488 where it was rejected by the 15 minute R2 pivot. As a result, we've seen a sharp, quick drop of around $470 this morning which was also quickly bought up. These liquidity grabs help price continue its journey higher. I have continued to warn about this volatility at these levels after such a strong, continued push from the December 2018 low.
Don't forget, the ~$11780 level is the 2018 TR resistance and just below that is the 4H R1 pivot at $11750, so traders should be mindful of possible temporary rejection at that point before continued upward movement. However, the target based on the height of the TR that price left overnight is ~$12366. This is based on Kraken, though, and the other exchanges often don't drop as far on the shakeouts since Kraken seems to suffer from liquidity issues on those shakeouts causing price to reach deeper for liquidity. So, if we take a look at Coinbase, Bitstamp, Bitmex, and Bitfinex, then we see that the TR is not as large and the target is actually $200-$270 lower at ~$12095-$12166. This is just a bit higher than my P&F target area between $11775 and $12075 (which was drawn on a Coinbase chart) suggesting that we may see some consolidation around this range. This doesn't mean that price won't reach $12366 on Kraken before consolidation, but traders must be mindful of the same pattern targets on other exchanges as they may differ as a result of the increased volatility at these levels. I wouldn't be surprised if we saw price hit the 2018 TR resistance and fall back to $11000/$11200 before pushing up once more and, finally, through it but that is just one of the many possibilities at this time. If price ultimately fails to get through that $11,800 level, then that could mark the top of the run. I believe we have higher to go, as I've stated numerous times, but that doesn't mean I haphazardly just long without thoughts about risk management. Traders absolutely must protect their capital above all else. As always, I will be discussing this and more in this morning's YouTube video (link is below).
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
Don't forget, the ~$11780 level is the 2018 TR resistance and just below that is the 4H R1 pivot at $11750, so traders should be mindful of possible temporary rejection at that point before continued upward movement. However, the target based on the height of the TR that price left overnight is ~$12366. This is based on Kraken, though, and the other exchanges often don't drop as far on the shakeouts since Kraken seems to suffer from liquidity issues on those shakeouts causing price to reach deeper for liquidity. So, if we take a look at Coinbase, Bitstamp, Bitmex, and Bitfinex, then we see that the TR is not as large and the target is actually $200-$270 lower at ~$12095-$12166. This is just a bit higher than my P&F target area between $11775 and $12075 (which was drawn on a Coinbase chart) suggesting that we may see some consolidation around this range. This doesn't mean that price won't reach $12366 on Kraken before consolidation, but traders must be mindful of the same pattern targets on other exchanges as they may differ as a result of the increased volatility at these levels. I wouldn't be surprised if we saw price hit the 2018 TR resistance and fall back to $11000/$11200 before pushing up once more and, finally, through it but that is just one of the many possibilities at this time. If price ultimately fails to get through that $11,800 level, then that could mark the top of the run. I believe we have higher to go, as I've stated numerous times, but that doesn't mean I haphazardly just long without thoughts about risk management. Traders absolutely must protect their capital above all else. As always, I will be discussing this and more in this morning's YouTube video (link is below).
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
Comment:
Daily is hitting the R2 pivot where we usually expect to see a pullback. That would likely have price targeting the $10K level, but it could stop around $10400-$10500, depending on the demand that potentially buys up the supply as it does. This would possibly print a spring or terminal shakeout on the 4H local TR. Traders should be utilizing intelligent risk management.
