Beautifull picture of BTC on the daily chart after it broke out the downward channel on the 14th with a big green dildo. As so often after a breakout the asset is testing if prior resistance has become support. The last three days we did test not only the topline of the downchannel but also the EMA’s just below BTC (20, 50, 100, 200). Fib at 50 is also nice.
Below all averages (band) on the daily but above support. Volume going down. Fundamentals (still january 3 mister Vitalil?) would suggest a pop to the north to respect and contribute to the larger ascending triangle. It might as well dive south. Nobody nobody nobody knows. 50-50 if you ask me
I expect BTC to find support just above 8500 at the 618 golden ratio fib level. This in perfect combination with a falling wedge breakout.
If you look at Bitcoins past performance, it has respected the 61.8 fib level many many times during previous bull cycles. This, if you believe BTC is in the early stages of a new bull market like I do myself.
Bullish pennants have high volume during the "pole candlesticks" and decreasing volume during the flag. BTC is showing just this!
To determine the price target, take the pole hight (approx 40%) and place it at the breakout which would lead to a target of approx 13200.
BTC bounced at a powerfull crossroad support of:
- EMA55 (has been strong support in previous bullruns)
- 0.618 FIB level, golden ratio
- RSI support. Looks like it wants to go back up
- Trendline support
It might Always dip down (fakeout) to briefly touch the EMA100-150. But I would expect it to get back above the EMA55 (or 50 if you like) very...