jacobcanfield

Bitcoin Has Major Resistance At This STRONG Fibonacci Level!

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
Happy Easter Traders!

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 wedges , ascending triangles, bearish 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 volatility 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 trend line that I just posted about...


We also have an ascending triangle 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 bullish 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 volume as price is moving up
- Bearish divs on daily and 4 hour time frames (240 chart)
- Rising Wedge



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 rising wedge .

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 volatility 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.
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Great analysis
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Time to short the BTC
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