Bitcoin's price hits resistanceGood morning, traders. Bitcoin's range continues to tighten as traders become restless. Don't allow this lack of price action push you into making an emotional decision. If you are actively trading at this time, then you should already have a plan in place. And if you have a plan, then you shouldn't allow emotions to change it.
Currently, we can see price printing a possible descending wedge. I continue to watch the 15 minute gap at $6558 as it acts like a magnet and, with price so close, we should expect it to fill on the 15 minute TF before price makes any potentially definitive movements upward. As such, I have included the descending channel that price has been moving within as an idea of what I am watching. At this point, a breach of the channel's resistance is also a breach of the July triangle's resistance. The 15 minute TF just bounced off oversold for the second time this morning and the MACD and its histogram recently printed bullish divergence but this is likely to be short-lived due to the very short TF. The 30 minute TF has room for RSI to fall and the MACD's histogram was the only bullish divergence noted. However, when we zoom out to the 4H we can see price rejected at that triangle's resistance and its subsequent pullback into the TR. We can also see demand in the form of price action and volume. The volume expands when price increases and contracts when price decreases. MACD is turned down and nearing a bearish cross of the signal line, but it's not guaranteed to happen yet. If it does, I will be watching for hidden bullish divergence to print on the histogram. This would require price to remain above $6516.23 while the histogram prints a low below that seen on October 7th.
The 1D shows the price contraction as today's candle remains confined within yesterday's highs and lows. At this point, even the body of today's candle is contained within the body of yesterday's candle. That doesn't mean it will stay that way, only that this currently describes price action up to this point. We can see the downward pressure from the triangle's resistance and the rising support from the ascending blue channel colliding. RSI remains bullish at 50.6 albeit flat since September 20th. MACD is near a bullish crossover of centerline but finds itself pulling back toward the signal line as a result of today's price action so far. OBV has continued to rise with price since October 3rd confirming the bullish movement for now. A drop through the proposed channel support means that we should be watching the ascending support line from the September triangle. Failure for this to hold then sets up the July triangle's support (ascending dashed line) as the watch area.
