Bulls grasping at straws or the herd playing catch up?
Updated
Good morning, traders. It's Friday and we've almost made it through another week of trading. Just when retail traders are ready to throw in the towel, Bitcoin gets a boost minutes before the end of the day and prints a potentially strong bullish reversal candle as we discussed on last night's live stream. However, we still need to see actual follow through because reversal candles need to be confirmed. So what does this mean? I'm looking for a daily close above $6416 as well as a weekly close above $6850. If Bitcoin can manage to do this, then it sets the stage for a real attempt at $7800. Make no mistake, as I've said since February, until we close above $11,800 we will be necessarily required continue to concern ourselves with further downward pressure.
We can see that price bounced off the S2 area -- more specifically, it bounced hard off the 61.8 fib level -- and is currently applying pressure against the support-turned-resistance at $6260. Price has been wicking up into that area all night long without any follow through yet and we just saw a large sell into the latest attempt (275 BTC between 8:35 and 8:45 a.m. CST) as it wicked to the descending broadening wedge's (DBW) resistance. We have also seen increasing buying pressure into this area since then. RSI remains low, currently sitting just above oversold, and MACD recently completed a bullish cross. The expectation should be that price will exit the DBW at the top, as it is a significantly bullish pattern, and target the green box. If price manages to close above the top of that box, we should expect to see it target the next box up. That being as it is, if we see price pierce the recent low of $6079.90 then we should expect it to continue lower as I mentioned in last night's live stream.
We can see that price bounced off the S2 area -- more specifically, it bounced hard off the 61.8 fib level -- and is currently applying pressure against the support-turned-resistance at $6260. Price has been wicking up into that area all night long without any follow through yet and we just saw a large sell into the latest attempt (275 BTC between 8:35 and 8:45 a.m. CST) as it wicked to the descending broadening wedge's (DBW) resistance. We have also seen increasing buying pressure into this area since then. RSI remains low, currently sitting just above oversold, and MACD recently completed a bullish cross. The expectation should be that price will exit the DBW at the top, as it is a significantly bullish pattern, and target the green box. If price manages to close above the top of that box, we should expect to see it target the next box up. That being as it is, if we see price pierce the recent low of $6079.90 then we should expect it to continue lower as I mentioned in last night's live stream.
Note
Seems to me that traders would be screaming for everyone to short it if this is what they were seeing. Potential H&S forming with a wick at the top of the right shoulder coinciding with contracting volume.Note
Sellers being cleared out for an easier move up? Huge gap in BTCUSD Shorts means little resistance in that price area.
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