Bitcoin - Indecision At The $9,000 Zone After Massive Rally
Let's start with a high time frame analysis:
The weekly closing was below the previous weekly closing after an was printed. The $8750 level needs to be reclaimed by the bulls or we will most likely range between $8200-$8800.
There are several that Bitcoin is respecting currently that I will go through.
The first is the green line, which was the previous diagonal resistance before the break out. It has now acted as support on several occassions.
The second is the pink line that was the resistance that has now flipped as support.
The easiest and cleanest chart is the diagonal support and the horizontal resistance that is slowly ascending towards the apex.
What we need to see are bulls break out of the $9,000 resistance with conviction and high to maintain our parabolic uptrend with our next targets at $9600 and $11,400.
If we can't, then we will probably see bitcoin range and see alts be able to break out and reset their oversold indicators.
The strongest support has come from the 20MA on the daily, which we have tested twice. Looking back in 2017's bull run, every time we lost the 20MA, we had a very strong reaction off of the 50MA, which seems to also line up with the .382 zone around $7000.
This would be an ideal buy zone to maintain the uptrend and this would be the 'buy the dip' area for me.
This area may get front ran or may only spend a very short period of time down there, so getting filled may be difficult.
Thanks for reading and if you enjoyed the analysis, make sure you give me a big thumbs up and let me know what you are seeing in the comments below.