Bitcoin beginning to show its hand!
Updated
Bitcoin has been playing in no mans land for a little while but decision time is fast approaching. It seems we have a bearish doji star on the Daily chart and there is a cross to the downside on stochastic RSI which is currently in overbought territory.
MA100 has acted as strong resistance. This coincides with the heavy resistance at the red trend line which has acted as strong support since September 2017 and as resistance since August 2018.
Using Fibonacci retracement, you can see the price has closed below 0.50 and we can now expect a drop now to 0.618 and MA50 at around $6600. This will be an important level because if $6600 holds as support, we can expect enough momentum for the bulls to take us back to the red trend line somewhere between $6920 and $7113, before either breaking through the red trend line and finding support if the bulls do find enough volume or, more than likely, potentially falling back to new lows from there.
If $6600 doesn't hold as support however, we can expect a potential drop to $5743 with a possible extension to a new yearly low $5555.
Target 1: $5743 (fib 1.272)
Target 2: $5555 (fib 1.414)
MA100 has acted as strong resistance. This coincides with the heavy resistance at the red trend line which has acted as strong support since September 2017 and as resistance since August 2018.
Using Fibonacci retracement, you can see the price has closed below 0.50 and we can now expect a drop now to 0.618 and MA50 at around $6600. This will be an important level because if $6600 holds as support, we can expect enough momentum for the bulls to take us back to the red trend line somewhere between $6920 and $7113, before either breaking through the red trend line and finding support if the bulls do find enough volume or, more than likely, potentially falling back to new lows from there.
If $6600 doesn't hold as support however, we can expect a potential drop to $5743 with a possible extension to a new yearly low $5555.
Target 1: $5743 (fib 1.272)
Target 2: $5555 (fib 1.414)
Note
Anything below $6500 can be considered bears territory. $6500 - $6600 is an important level to keep an eye on in the short term.Note
Looking at the 4 hour chart we have hidden bullish divergence and Bitfinex shorts are dropping so $6600 may just hold and we could see up move up from here.
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