Hi friends! Welcome to this update analysis on Bitcoin! Today, we're going to look at the short term chart, to really dissect the recent rally. So, without further ado, let's get right to it!
Looking at the 15 minute chart, we can see that after Bitcoin exploded above the pink trendline (which is the inverse head and shoulders neckline) price spiked up, and then fell to about the 4680 level. From there, we can see that BTC found support at 4680, and then started to rally higher. Now, we can see that it appears to be in an uptrend channel (in pink.) There is still some room on the upside, before we really start to run into the major overhead resistance zone. So, I do think there is a good possibility that Bitcoin will continue to rally.
As you can see, I have put some arrows up on the chart, to show a crude example of what I think price could do, over the next week or so. We are currently running into resistance at the top of the downtrend channel, and price is responding negatively to that. However, we are above the 61.8% retrace, from the fall from 6000 that happened last year. That level is represented by the grey trendline at about 5235. So, I think price will get rejected at the top of the channel, but we may hold the 61.8% retrace. If that happens, we could bounce on it for a few days, or we may even fall slightly below it. Either way, as long as BTC stays inside of this uptrend channel, I think price will continue to ride it higher, until we reach the major overhead resistance zone. If that happens, I will be forced to take profits, and I will be looking to buy back in at lower prices.
As I'm writing this, the current candle is printing a tiny little hammer off of the 61.8% retrace. Awesome. =D Anyway, I think it is very likely, after this big of a rally, that we will test the major overhead resistance zone. However, whenever we do, I think price is certain to be rejected there. As you can see by my arrows, I do expect that selling pressure could pick up from there too. If that also happens, I expect the 4680 level to provide support. It's where the initial spike found support, and the 200 EMA on the daily chart is right there too. So, I expect that level will be supportive. If that happens, I will buy back in at that level. So there are a lot of factors here that I am watching. I don't really want to sell out of my position too often, but I have to use my trading abilities to grow my position when the time is right. If price runs soars into major overhead resistance, the time is right. So, that's my opinion on the market, and how I could play things, if the price moves the way I am anticipating.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Looking at the 15 minute chart, we can see that after Bitcoin exploded above the pink trendline (which is the inverse head and shoulders neckline) price spiked up, and then fell to about the 4680 level. From there, we can see that BTC found support at 4680, and then started to rally higher. Now, we can see that it appears to be in an uptrend channel (in pink.) There is still some room on the upside, before we really start to run into the major overhead resistance zone. So, I do think there is a good possibility that Bitcoin will continue to rally.
As you can see, I have put some arrows up on the chart, to show a crude example of what I think price could do, over the next week or so. We are currently running into resistance at the top of the downtrend channel, and price is responding negatively to that. However, we are above the 61.8% retrace, from the fall from 6000 that happened last year. That level is represented by the grey trendline at about 5235. So, I think price will get rejected at the top of the channel, but we may hold the 61.8% retrace. If that happens, we could bounce on it for a few days, or we may even fall slightly below it. Either way, as long as BTC stays inside of this uptrend channel, I think price will continue to ride it higher, until we reach the major overhead resistance zone. If that happens, I will be forced to take profits, and I will be looking to buy back in at lower prices.
As I'm writing this, the current candle is printing a tiny little hammer off of the 61.8% retrace. Awesome. =D Anyway, I think it is very likely, after this big of a rally, that we will test the major overhead resistance zone. However, whenever we do, I think price is certain to be rejected there. As you can see by my arrows, I do expect that selling pressure could pick up from there too. If that also happens, I expect the 4680 level to provide support. It's where the initial spike found support, and the 200 EMA on the daily chart is right there too. So, I expect that level will be supportive. If that happens, I will buy back in at that level. So there are a lot of factors here that I am watching. I don't really want to sell out of my position too often, but I have to use my trading abilities to grow my position when the time is right. If price runs soars into major overhead resistance, the time is right. So, that's my opinion on the market, and how I could play things, if the price moves the way I am anticipating.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Note
Well, so much for that idea. Either way, I'm holding until we first make contact with the overhead resistance zone. Here's what could be happening now...
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.