Bitcoin : The target of -0.382 of fibonacci retracement
Hello all, here I give you another update of bitcoin during last week's volatility.
We can see that the $6000 region is becoming a very tough resistance for bitcoin with several rejections toward this area. This rejection cause a correction toward the 0.382 fibonacci retracement which could be a support for the lower degree of price action. This 0.382 fibonacci retracement is moving align with the white support trend line which is likely to be tested in near future. I won't turn back the bullish bias to the bearish bias as long as the price is still moving above this support trend line.
Looking at the MACD on the daily chart, it looks like that the histogram is having a ticking up to the upside and the dynamic lines are having their golden cross over. On the current action of the price, the price could have its bounce from nearest level of .382 fibonacci retracement which is around $5790 region (only if it holds). 0.382 fibonacci retracement level is however always be a strong area of support.
Assuming the confluence zone , I think that we still could see the price to touch the higher level of resistance around $8000 region which has the alignment with the -0.382 fibonacci retracement level. So, I'm still expecting this support trend line can hold the price from further drop of the market. Shorting at this level is clearly not a good choice, with a ticking up histogram to the positive side on daily chart, golden cross over and near the support trend line, the risk of shorting the market isn't acceptable.
We can see that the $6000 region is becoming a very tough resistance for bitcoin with several rejections toward this area. This rejection cause a correction toward the 0.382 fibonacci retracement which could be a support for the lower degree of price action. This 0.382 fibonacci retracement is moving align with the white support trend line which is likely to be tested in near future. I won't turn back the bullish bias to the bearish bias as long as the price is still moving above this support trend line.
Looking at the MACD on the daily chart, it looks like that the histogram is having a ticking up to the upside and the dynamic lines are having their golden cross over. On the current action of the price, the price could have its bounce from nearest level of .382 fibonacci retracement which is around $5790 region (only if it holds). 0.382 fibonacci retracement level is however always be a strong area of support.
Assuming the confluence zone , I think that we still could see the price to touch the higher level of resistance around $8000 region which has the alignment with the -0.382 fibonacci retracement level. So, I'm still expecting this support trend line can hold the price from further drop of the market. Shorting at this level is clearly not a good choice, with a ticking up histogram to the positive side on daily chart, golden cross over and near the support trend line, the risk of shorting the market isn't acceptable.
Beside all of the signs that I've mentioned on my previous post, this is another confluence reasons that could support my bullish bias toward the $8000 region for mid term purpose. Here I find the possible type of bullish falling wedge that usually lead the price to the higher region.
Although we haven't seen any sign of breaking out this bullish falling wedge, it's clearly not a good idea to open short position unless the price breaks down of the white support trend line.
This pattern is another confluence reason for me to still hold my long position from now. I could be wrong and the price could breaks down of current support easily but, we do trade from every perspective of possibility and this time, bullish possibility is still in play.