Bitcoin Has Major Resistance At This STRONG Fibonacci Level!
Bitcoin has been in a weird, no trade zone for a while now without much action, but I suspect that's about to change.
Bear traps, bull traps, rising , ascending triangles, divs ... WTF is Bitcoin planning here?
To be honest, I am not in a margin trade right now as Bitcoin isn't giving much of an edge at the moment and the is really high, but I am seeing some really fascinating confluence at the $5700 level that I want to share with you!
This is an incredible scenario of 4 different fibonacci levels all confluent at the same level. It also happens to be the level of the previous resistance when Bitcoin broke the downtrend at $6,000.
As it's playing out, I believe we'll see a major push to that $5700 level, but I don't think we will be able to break all of that resistance in one go.
The KEY to this level is it's a very old hidden that I just posted about...
We also have an formation with a bear trap and a bull trap and a decision point should be coming within a few days.
We've got shorts that are stacking up right now to give us the fuel to push up there, but not high enough to break through with a chain of liquidation orders.
Fibonacci level #1 - Retracement of the overall move to the 78.6%
Fibonacci level #2 - 161.8% extension of the swing high and swing low of the recent rally.
Fibonacci level #3 - The 261.8% extension from the first pull back on this recent consolidation.
Fibonacci level #4 - (less reliable due to subjectivity of fib level) - 4.23 extension on the small pull back before the rally, but I included it because the 2.618 seems to be acting as a reliable support as well.
Now, we are getting to an overbought territory and we are starting to see signs of exhaustion from the bulls.
- Lower as price is moving up
- divs on daily and 4 hour time frames (240 chart)
The problem is that the $5150 area keeps getting bought up very quickly and with the shorts rising, this means we could break up and out of the .
At this point, I have no positions in margin and am only in Bitcoin in spot with a lower entry. I don't feel like this is a good area to hedge with a short because the RR just isn't that great and the makes it too difficult to manage risk.
If you're looking for an entry, $5050-$5100 looks solid if the support holds, if that breaks, then I'll be looking for a deeper pull back.
Either way, I think the next 3-4 days will show a big move up to 10-15% on Bitcoin .
Let me know what YOU see and if you want to support my work, click like! Thanks for reading.