Bitcoin at heavy resistance level. If surpaassed - $43k is next
Hello guys,
Here is my take on what is happening with BTC right now.
On the daily chart (the main one under this idea), we see a big bull flag pattern currently being formed. As the highest point, we take the all-time high of $42,000 where we also put the start point for our downtrend reversal Fibonacci retracement. The lowest point will be the swing low at $28,700.
As you can see, with just one "small" exception from January 21 the downtrend channel manages to keep the price moving within its boundaries.
What we saw in the last few days was bitcoin struggling in the $31,800 - $32,200 area where both the horizontal S/R and the Fibonacci 23.60 are situated. Once it escaped for that zone, it went right up to the next level at $33,800.
It is visible from the chart that the $33,800 - 34,600 zone was a particularly tough one. It is where BTC first stopped its rally on January 3, forced to make a short pullback to $32,000 (!) before continuing the uptrend. Then it served as support on January 12 (this is also where the diagonal support came into play). Once again on January 20 and later, on January 22 when the first try to break it from below failed.
My guess would be that if bulls re-take $34,600-$34,700 and surpass the short-term EMA on the daily chart, the bull run will be resumed with full force. A break above the downtrend channel, will confirm the bull flag and open the door for $43-44k at least in the short-term.
*Volume and Momentum Indicators:
Daily volumes, Volume Zone Oscillator, and RSI are all at the levels from December 12 when the big upward movement began.
t is true that usually low volumes or lack of real volumes during an uptrend might suggest it is not sustainable, but that was the case back in December, so the next couple of days will be crucial I think
Cheers
Here is my take on what is happening with BTC right now.
- Daily chart
On the daily chart (the main one under this idea), we see a big bull flag pattern currently being formed. As the highest point, we take the all-time high of $42,000 where we also put the start point for our downtrend reversal Fibonacci retracement. The lowest point will be the swing low at $28,700.
As you can see, with just one "small" exception from January 21 the downtrend channel manages to keep the price moving within its boundaries.
What we saw in the last few days was bitcoin struggling in the $31,800 - $32,200 area where both the horizontal S/R and the Fibonacci 23.60 are situated. Once it escaped for that zone, it went right up to the next level at $33,800.
It is visible from the chart that the $33,800 - 34,600 zone was a particularly tough one. It is where BTC first stopped its rally on January 3, forced to make a short pullback to $32,000 (!) before continuing the uptrend. Then it served as support on January 12 (this is also where the diagonal support came into play). Once again on January 20 and later, on January 22 when the first try to break it from below failed.
My guess would be that if bulls re-take $34,600-$34,700 and surpass the short-term EMA on the daily chart, the bull run will be resumed with full force. A break above the downtrend channel, will confirm the bull flag and open the door for $43-44k at least in the short-term.
*Volume and Momentum Indicators:
Daily volumes, Volume Zone Oscillator, and RSI are all at the levels from December 12 when the big upward movement began.
t is true that usually low volumes or lack of real volumes during an uptrend might suggest it is not sustainable, but that was the case back in December, so the next couple of days will be crucial I think
Cheers
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