Bitcoin: Cup of coffee to get a short term rally going!
Updated
Bitcoin (BTC/USD): In the short term we have a bullish Cup and Handle pattern currently being formed on the 1 hour chart. StochasticRSI oversold and using Fibonacci retracement, once we have broken above the handle resistance at $6533 (0.618 fib), the market should be ready for a move back up to test $6660 resistance. Once above $6660 we can expect to test $6750 with a possible extension to $6800 at 1.414 fib.
A close above $6865 at 1.618 would probably mean a test of $7200 resistance at 2.618 fib after a retest at $6800 support.
A close below $6440 would invalidate this pattern taking BTC/USD back down to retest support at $6328.
Looking at Bitfinex shorts vs longs, shorts have increased by 7.74% and longs have increased by 4.22% since our $6328 low on 25 September so the market still trying to make up its mind. Tomorrow is the CME Bitcoin Futures expiration date which usually results in a big move so keep a close eye on your charts and have your alerts set and ready.
Happy trading and good luck!
Previous Analysis:
A close above $6865 at 1.618 would probably mean a test of $7200 resistance at 2.618 fib after a retest at $6800 support.
A close below $6440 would invalidate this pattern taking BTC/USD back down to retest support at $6328.
Looking at Bitfinex shorts vs longs, shorts have increased by 7.74% and longs have increased by 4.22% since our $6328 low on 25 September so the market still trying to make up its mind. Tomorrow is the CME Bitcoin Futures expiration date which usually results in a big move so keep a close eye on your charts and have your alerts set and ready.
Happy trading and good luck!
Previous Analysis:
Note
Solid squeeze! Now just to close above $6660.
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