Ever since Bitcoin hit the 6,900 price area, we have been seeing a continuos bullish market momentum following our ascending trend line on the 4H time frame. Recently we achieved the psychological resistance level of 9,000, where the buyers seemed to have had their stop losses set, therefore, bitcoin unfortunately failed to break through. So with that being said, this gives us a perception of a possible pullback to enter new longs.
Following my analysis provided, I see two possible outcomes in this scenario:
1. We pullback to the 4th point of the ascending trend line and let the bulls take over from there, ultimately, pushing the price to the next resistance zone of 9,000 - 9,100. Also, keep in mind that there is a strong level of support around 8,550 area. We could expect to see a perfect cross of the ascending trend line touching with the support line on 8,850, where we would then see the price change momentum to the up-side.
2. We failed to bounce off the ascending trend line and thus broken through it in search of the next level of support, which so happens to be the area of 8,450 to take our next long position.
Trade at your own risk and use proper risk management assessment.
Following my analysis provided, I see two possible outcomes in this scenario:
1. We pullback to the 4th point of the ascending trend line and let the bulls take over from there, ultimately, pushing the price to the next resistance zone of 9,000 - 9,100. Also, keep in mind that there is a strong level of support around 8,550 area. We could expect to see a perfect cross of the ascending trend line touching with the support line on 8,850, where we would then see the price change momentum to the up-side.
2. We failed to bounce off the ascending trend line and thus broken through it in search of the next level of support, which so happens to be the area of 8,450 to take our next long position.
Trade at your own risk and use proper risk management assessment.