Bullish Divergence on 30 min chart and a retest of $6660
Updated
Bullish divergence on the 30 min chart and bounce off the bottom of the channel along with oversold StochRSI on the lower TF means a probable movement up from here to retest $6580 resistance and potentially get above $6660 again at 0.618 fib using Fibonacci retracement. If $6660 doesn't hold and we drop below the yellow channel, we will probably be heading south to retest $6100.
If $6660 holds, we still need to break the larger trend line resistance (formed by the July and September peaks) at around $6750 so that the price can break through the $6800 heavy resistance and move towards the top of the channel to test $6900 at 0.382 fib on the larger scale. Once BTCUSD has broken above that trend line we can expect it to act as solid support for the short term. Hopefully we can then break above the channel to for a move to $7100 and then potentially the $7400 high.
If the various layers of resistance do not hold and price drops below the yellow channel, we can expect a retest of the recent $6100 low and if that doesn't hold we can expect a test of $5750 at 1.272 fib and a possible extension down to $5570 at 1.414 fib for a new yearly low and a break of market structure.
If we can break above the $7400 we could potentially go on to test the $8500 high set previously in July but I personally think we will probably go down from there since we're still in the midst of a bear market and we still need to get above the MA100 on the daily, let alone the MA200. Typically a bull market is also preceded by capitulation and consolidation which still needs to happen.
Happy trading and good luck!
Previous analysis:
If $6660 holds, we still need to break the larger trend line resistance (formed by the July and September peaks) at around $6750 so that the price can break through the $6800 heavy resistance and move towards the top of the channel to test $6900 at 0.382 fib on the larger scale. Once BTCUSD has broken above that trend line we can expect it to act as solid support for the short term. Hopefully we can then break above the channel to for a move to $7100 and then potentially the $7400 high.
If the various layers of resistance do not hold and price drops below the yellow channel, we can expect a retest of the recent $6100 low and if that doesn't hold we can expect a test of $5750 at 1.272 fib and a possible extension down to $5570 at 1.414 fib for a new yearly low and a break of market structure.
If we can break above the $7400 we could potentially go on to test the $8500 high set previously in July but I personally think we will probably go down from there since we're still in the midst of a bear market and we still need to get above the MA100 on the daily, let alone the MA200. Typically a bull market is also preceded by capitulation and consolidation which still needs to happen.
Happy trading and good luck!
Previous analysis:
Note
Sorry $6660 is at 0.382 fibNote
Price has broken through $6580 resistance now just to close above $6600 for the next leg up above $6660 at 0.382 fib.
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