BITCOIN - Really Strong Resistance!Today, BTC price got a movement upwards and currently, it is slightly above the one of the round number $5,500. The price approaching the major upwards target area which is the blue box. Finally, we can make and count some of the reversal/target criteria which could be a starting point to make a little correction downwards. Target criteria because, if you are short-term long on BTC then this area should be the profit taking area. Several price action criteria matching each other in one area and soon we can find out, do this area works as a strong resistance or not because this area plays a very important role on mid-term perspective or even a long-term perspective.
Major criteria:
1. Fibonacci retracement levels inside the blue box:
- 38% retracement level: pulled from the 2018 May high to the 2018 low point.
- 61.8% golden ratio: pulled from the 2018 September high to the 2018 low point.
Those levels matching with each other and those retracement levels should act as pretty strong resistance levels.
2. Orange lines just below the $5,800 are the major support levels from the past year but now, they should start to work as resistance levels and again, they are on the blue box.
3. The upward channel upper trendline (blue line) third touch is exactly in this blue area. Individually it is not the tradeable criterion but again, it is on the blue box where those all comes together in one area and together they can make some impact on the price.
Subjective criteria:
4. Slight RSI Divergence on the 4H but also on the 1H, compared with the first higher high on the graph.
5. Fibonacci extensions
6. Some sloppy chart patterns target area is the blue box - a breakout from the smaller ascending channel and a breakout from a bit sloppy Inverted Head & Shoulders targets.
7. Altcoins are on the plus side but not so deep. They reacted to this move but too slowly and this could be a little sign that only BTC gets "pumped".
So, we have three major criteria and 4 a bit subjective criteria which support that area, that blue box area at $5,700-$5,850. If the price reaches into to the mentioned box, then look at altcoins, if they are still stable (not on the deep plus side) then it would be another confirmation which will drive the price back downwards.
If you are on the short-term long position then this area should be definitely the place where you have to consider to take some profits because the resistance is pretty strong. If the price reaches into the blue box, then I start to make more frequent updates and maybe we can catch some bearish candlestick pattern to get more confirmations.
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Best regards!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
