Looking at the daily chart there two significant elements to pay attention to:
(1) Support Zone ($7100 - $ 5800) - this price range has been tested a number of times and a clear break below this zone could see us drop to around $4200 (1.138 Fib extension) or even $2400 (1.272 Fib extension).
(2) Resistance Trendline - Also tested a number of times. A clear break may be the catalyst for a bullish rally to $10 000.
We really are at a cross-roads as I expect we will get a much clearer indication of medium term price direction depending on which breaks first - support or trendline.
Given that we are currently in a bear market, I believe that a downside break is more likely. Furthermore, on the hourly timeframe we are seeing reversal patterns repeatedly fail to reach target - a strong sign of prevailing weakness. See most recent head & shoulders failed to reach target (green box).
Conclusion - I would avoid buying Bitcoin at current levels. I would rather wait to buy after a clear break above trendline and a new bull trend looks likely. Should support break I will be looking for trend reversal patterns to build new long positions.
(1) Support Zone ($7100 - $ 5800) - this price range has been tested a number of times and a clear break below this zone could see us drop to around $4200 (1.138 Fib extension) or even $2400 (1.272 Fib extension).
(2) Resistance Trendline - Also tested a number of times. A clear break may be the catalyst for a bullish rally to $10 000.
We really are at a cross-roads as I expect we will get a much clearer indication of medium term price direction depending on which breaks first - support or trendline.
Given that we are currently in a bear market, I believe that a downside break is more likely. Furthermore, on the hourly timeframe we are seeing reversal patterns repeatedly fail to reach target - a strong sign of prevailing weakness. See most recent head & shoulders failed to reach target (green box).
Conclusion - I would avoid buying Bitcoin at current levels. I would rather wait to buy after a clear break above trendline and a new bull trend looks likely. Should support break I will be looking for trend reversal patterns to build new long positions.
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.
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.