Bitcoin's Key Can Be Found In The RSI and Fibs...
Updated
The key to yesterday's breakdown was in the RSI. The price was still flat and we saw a major divergence happen right before price fell through the floor.
The key to this chart and understanding what Bitcoin is doing can be found using the fibs from the swing high to the swing low.
Bitcoin was pushing against along the .382 and finally broke through and ran exactly to the .5 Fib level where it was rejected two times previously.
It has since fallen back down to the $6800 retracement level that we were looking for as a potential long entry.
The STOCH is currently showing a strong down trend and the RSI just broke into bullish territory on the 4 hour.
On the daily, we are still in the rising wedge with a lot of confluence around the .382 fib for a potentially strong entry.
According to the VPVR, we have very strong support at $6700 level, so entering now with a stop below the $6700 level for a bounce off the .382 is a pretty safe play.
There's horizontal as well as diagonal support.
This was much more technical in nature for a break down with no real news catalyst that drove it, which makes me believe that it'll bounce based on technicals as well.
We do have the futures closing tomorrow along with a US holiday plus a weekend, so these upcoming few days will be interesting to say the least.
Thanks for following along and liking my charts.
The key to this chart and understanding what Bitcoin is doing can be found using the fibs from the swing high to the swing low.
Bitcoin was pushing against along the .382 and finally broke through and ran exactly to the .5 Fib level where it was rejected two times previously.
It has since fallen back down to the $6800 retracement level that we were looking for as a potential long entry.
The STOCH is currently showing a strong down trend and the RSI just broke into bullish territory on the 4 hour.
On the daily, we are still in the rising wedge with a lot of confluence around the .382 fib for a potentially strong entry.
According to the VPVR, we have very strong support at $6700 level, so entering now with a stop below the $6700 level for a bounce off the .382 is a pretty safe play.
There's horizontal as well as diagonal support.
This was much more technical in nature for a break down with no real news catalyst that drove it, which makes me believe that it'll bounce based on technicals as well.
We do have the futures closing tomorrow along with a US holiday plus a weekend, so these upcoming few days will be interesting to say the least.
Thanks for following along and liking my charts.
Note
Nice bounce on both the price action, fib level, RSI and a turn over on the STOCH.Well done to those who took the long trade.
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