Good morning, traders. Bitcoin's price dropped last night as expected but found support at the $6560 level. Since then it has been traveling gradually upward and this morning saw a strong push up of almost $200.
On the 4 hour chart, we can see the move back up and how it has found resistance, once again, at the 1.414 fib extension at the bottom of the cloud. RSI is near its own resistance as well. MACD has started to pull away from the signal line thereby increasing its positive histogram (which is bullish). Price may be building an ascending triangle within the ascending channel. We currently have a touch at the top and one at the bottom. In order to confirm this pattern, we now need one more touch at the top followed by one more touch at the bottom as price consolidates within it. Based on the size of the triangle, if this occurs then we should expect price to potentially reach the $7250 area. This makes it something worth watching to see if it plays out. Price has a lot of work to do in order to make it to $7200, but if it can then it has a shot at becoming a full-fledged bull run.
Looking at the 30 minute chart, we can see how price moved through through the night as it bounced off the support level until the large move this morning which first saw a dip down through that support. If price can consolidate in this current area, then we should be able to see a push toward $7000, based on the height of that large green candle that was just printed. The idea being that consolidation in this area would create a pennant or flag and the target is then based off the height of the flagpole (that large green candle). Failure of price to follow through and continue upward will likely see it testing $6600 once more if it drops below $6680
The daily chart shows the potential bear flag that may be playing out. Remember, though, it's always a bear flag until it isn't anymore. What I mean is that once price breaches the top of the ascending channel, the idea of a bear flag is invalidated. As we can see, that means price ultimately has to push above $7200. RSI is approaching its next resistance level at 47 and MACD is pulling away from the signal line after printing a bullish crossover yesterday. %B is also attempting to breach its own resistance line. So far things are looking quite bullish with this morning's price action. We need to see follow-through, however, and a continued increase in volume would go a long way to providing that. Traders should continue to keep an eye on BTCUSD shorts as well as the BTCUSD shorts v. longs charts for the reasons mentioned in previous analysis. As I have continued to say, a drop through $6200 will likely see us breaching the February low, albeit likely just a hard drop and harder rebound similar to what we saw in February.
On the 4 hour chart, we can see the move back up and how it has found resistance, once again, at the 1.414 fib extension at the bottom of the cloud. RSI is near its own resistance as well. MACD has started to pull away from the signal line thereby increasing its positive histogram (which is bullish). Price may be building an ascending triangle within the ascending channel. We currently have a touch at the top and one at the bottom. In order to confirm this pattern, we now need one more touch at the top followed by one more touch at the bottom as price consolidates within it. Based on the size of the triangle, if this occurs then we should expect price to potentially reach the $7250 area. This makes it something worth watching to see if it plays out. Price has a lot of work to do in order to make it to $7200, but if it can then it has a shot at becoming a full-fledged bull run.
Looking at the 30 minute chart, we can see how price moved through through the night as it bounced off the support level until the large move this morning which first saw a dip down through that support. If price can consolidate in this current area, then we should be able to see a push toward $7000, based on the height of that large green candle that was just printed. The idea being that consolidation in this area would create a pennant or flag and the target is then based off the height of the flagpole (that large green candle). Failure of price to follow through and continue upward will likely see it testing $6600 once more if it drops below $6680
The daily chart shows the potential bear flag that may be playing out. Remember, though, it's always a bear flag until it isn't anymore. What I mean is that once price breaches the top of the ascending channel, the idea of a bear flag is invalidated. As we can see, that means price ultimately has to push above $7200. RSI is approaching its next resistance level at 47 and MACD is pulling away from the signal line after printing a bullish crossover yesterday. %B is also attempting to breach its own resistance line. So far things are looking quite bullish with this morning's price action. We need to see follow-through, however, and a continued increase in volume would go a long way to providing that. Traders should continue to keep an eye on BTCUSD shorts as well as the BTCUSD shorts v. longs charts for the reasons mentioned in previous analysis. As I have continued to say, a drop through $6200 will likely see us breaching the February low, albeit likely just a hard drop and harder rebound similar to what we saw in February.
