Bitcoin near top
Updated
Let's take a look at Bitcoin. It has been near the top of its logarithmic channel for two weeks now, steadily climbing a rising wedge. It has tapped the 161.8% fibonacci extention of the early summer wave for the first time. 6400 will be a strong resistance. If it breaks BOTH the 161.8 fibonacci extension and the uper boundary of the rising wedge, Bitcoin could see a jump to about 7100. There is plenty of room in the RSI and Stoch for this movement. This does not mean that it has to happen. If it fails to break upward, Bitcoin could see a drop to 4200-4300, near the bottom of the channel.
It is impotant to note that if the RSI holds its 8 month ceiling, it will very likely create a bearish divergence, a strong predictor of a bearish market. This is one of the reasons Bitcoin is probably nearing a top.
It is impotant to note that if the RSI holds its 8 month ceiling, it will very likely create a bearish divergence, a strong predictor of a bearish market. This is one of the reasons Bitcoin is probably nearing a top.
Note
Be careful trading around here. There may be high reward in trading 6400-7100, but there is also high risk.
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