BTC/USD Bullish Bias On Bitcoin After Channel Break March 2
Price has broken above the long term bearish channel and entered the Cloud on the daily timeframe. Right now it is facing the Weekly R1 pivot at 11160. The red line marks the important 61,8 fib on daily tf, which has previously acted resistance. The trend has shifted from bearish to neutral on daily tf and here on the H4 chart trend is bullish with a bullish twist in place. I have marked the hidden bullish divergence with green lines in the price chart and the oscillator. After the first HBD we saw a $3000 dollar gain exactly. If we see a similar move from the current HBD it will take us up to the 14300 level (yellow line). I have also marked an identical leg (CD leg) in a ABCD pattern, which has its target by the Monthly R2 at 15200 level. The ABCD pattern will be activated first when price takes out the high at 11780 from Feb 20.
We do see some bearish divergence and a slight pull back or hesitation by the Weekly R1 as of now. Bulls would like to see a taking out of the Feb 20 high targeting the 12800 pivot confluence resistance as a first stop.
On the downside, if price comes right back and close below the trendline and enter the Cloud and also takes out the 10220 low, it will likely expose the yet untraded Monthly pivot point at 9350. Ofcourse Bulls are worried to have an untraded higher pivot point behind price action as it tends to excert a pull on price. As long as price trades and holds above the 10500, bias is to the upside on this timeframe.
We do see some bearish divergence and a slight pull back or hesitation by the Weekly R1 as of now. Bulls would like to see a taking out of the Feb 20 high targeting the 12800 pivot confluence resistance as a first stop.
On the downside, if price comes right back and close below the trendline and enter the Cloud and also takes out the 10220 low, it will likely expose the yet untraded Monthly pivot point at 9350. Ofcourse Bulls are worried to have an untraded higher pivot point behind price action as it tends to excert a pull on price. As long as price trades and holds above the 10500, bias is to the upside on this timeframe.
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