Good morning traders. I am back from our Memorial Day Weekend holiday, here, in the U.S. and price has continued trending upward as suggested it was likely to do. We saw a breakout of the ascending triangle to a high of $8939 on Bitstamp, so far, just a couple of days ago. Since then price has been printing a flag which should have a target of just over $9850.
We can see that the 1H Stoch RSI is in oversold and RSI is slightly bearish at 46.5. There is a very slight chance that we could see price dip down toward $8335 (1H pivot) to $8415 (1D R4 pivot) first, but I doubt it will happen. Ultimately I expect this final move up toward $10,000 before we get our much needed, much larger correction. The daily RSI should print bearish divergence to confirm the reversal. The first bit of resistance on a break through the recent swing high should be the R1 pivot at $9200. In terms of the local 1H TR, price likely just printed a Spring and should be headed up with the R1 pivot possibly providing the SOS target before some more consolidation and further upward movement.
Generally, I am expecting price to hit the green box before beginning the large reversal. But will we get a blow off top or just a larger distribution TR? I have been expecting the former but am in no way sure of that at this time. That being said, most of cryptotwitter is assuming that price will reverse at $10,000, but a breakout of the blue channel may indicate a slightly higher target of ~$10,500-$10,700, based on the height of that channel. The 1H R5 pivot sits at $12,270, so I wouldn't be surprised to see price accelerating toward this area as the FOMO kicks in either. Price continuing toward this level would have the added benefit of liquidating those who short around $10,000 as well as causing FOMO as traders jump in long once more, afraid they are going to miss further upside, and then trapping them as price suddenly reverses. On the other hand, if a large TR forms around the $10,000-$11,000 area, traders should be extremely cautious and attempt to analyze the price action and volume. Again, my initial expectation would be distribution if a large TR forms. The only other thing I can really caution traders on, is to be aware of the blue channel's resistance. While most are now expecting $10,000, it is possible that price does not break the resistance and, instead, reverses from there.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
We can see that the 1H Stoch RSI is in oversold and RSI is slightly bearish at 46.5. There is a very slight chance that we could see price dip down toward $8335 (1H pivot) to $8415 (1D R4 pivot) first, but I doubt it will happen. Ultimately I expect this final move up toward $10,000 before we get our much needed, much larger correction. The daily RSI should print bearish divergence to confirm the reversal. The first bit of resistance on a break through the recent swing high should be the R1 pivot at $9200. In terms of the local 1H TR, price likely just printed a Spring and should be headed up with the R1 pivot possibly providing the SOS target before some more consolidation and further upward movement.
Generally, I am expecting price to hit the green box before beginning the large reversal. But will we get a blow off top or just a larger distribution TR? I have been expecting the former but am in no way sure of that at this time. That being said, most of cryptotwitter is assuming that price will reverse at $10,000, but a breakout of the blue channel may indicate a slightly higher target of ~$10,500-$10,700, based on the height of that channel. The 1H R5 pivot sits at $12,270, so I wouldn't be surprised to see price accelerating toward this area as the FOMO kicks in either. Price continuing toward this level would have the added benefit of liquidating those who short around $10,000 as well as causing FOMO as traders jump in long once more, afraid they are going to miss further upside, and then trapping them as price suddenly reverses. On the other hand, if a large TR forms around the $10,000-$11,000 area, traders should be extremely cautious and attempt to analyze the price action and volume. Again, my initial expectation would be distribution if a large TR forms. The only other thing I can really caution traders on, is to be aware of the blue channel's resistance. While most are now expecting $10,000, it is possible that price does not break the resistance and, instead, reverses from there.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.