Bitcoin: Higher Time Frame Breakout Series - Daily
CoinSavvy here with a breakout update, we are going to focus on different time frames to give us a heads up of what is to come after this breakout is finished rallying, so far though very exciting and if you look back at my post from the 17th here 
you can see that the 3 day closed above the 200 sma and how I wrote if that happens then Bitcoin is going to around $9,500.
To gain maximum perspective, we should look at low, medium, high and macro time frames. This is so we can put the puzzle together and see the big picture to make educated game plans to execute depending on whatever scenario plays out.
I am creating multiple chart analysis Ideas for the high and macro time frames starting with the Daily then the 2 Day, 3 Day, Weekly and Monthly.
Analyis:
To start I have posted this Daily chart, we can see this fresh breakout got us all the way near $9,000 in just a day and Bitcoin closed very strong above $8,700. It’s above all moving averages and most of the smaller moving averages are trading above the larger ones which is all very bullish.
Stochastics %K (blue) had a bullish cross above the %D (purple) and entered back into the critical zone (80) a few days back then defended it and now it’s pointing up, looking like it wants to go higher.
RSI (bold blue - 14) broke above the ema (white - 21) and entered the critical territory looking like it wants to go higher. If we keep going higher we may create some bearish divergence depending on how many candlesticks it takes as well as if RSI doesn’t get above and close above the 87.5 reading, if it were to get above that level it would invalidate the divergence. On that same note, if it takes more than a few candlesticks then that would also invalidate the divergence due to RSI reading being 14 and the number of candlesticks that go back to that high would be more than 14 (same thing for stochs divergence) so that would invalidate the divergence. If we look at the higher time frames, these are way more probable to creating divergence and it’s something I want to discuss for the 2 and 3 Day charts.
Daily looks like it wants some higher prices, my target is around the $9,500 area although I could see us get all the way up near $10,000. At that point I am expecting a pretty severe retracement but will speak about this in a different series.
To bring up the other side of things, if we put in a local top at $9,000 then bearish divergence would play out and that would take us down to around the 21 ema around $7,600 which wouldn't be what the bulls want and could be an indication that this may be our our longer term local top to send us back down to the $6,000 - $5,000 region. Of course this is the least likely thing to happen in my opinion but want to be prepared for if it does happen. 4 hour closes below $7,600 would be a sell for me.
Coin Savvy, signing off. Enjoy your night, enjoy the charts, and respect the technical analysis.
To gain maximum perspective, we should look at low, medium, high and macro time frames. This is so we can put the puzzle together and see the big picture to make educated game plans to execute depending on whatever scenario plays out.
I am creating multiple chart analysis Ideas for the high and macro time frames starting with the Daily then the 2 Day, 3 Day, Weekly and Monthly.
Analyis:
To start I have posted this Daily chart, we can see this fresh breakout got us all the way near $9,000 in just a day and Bitcoin closed very strong above $8,700. It’s above all moving averages and most of the smaller moving averages are trading above the larger ones which is all very bullish.
Stochastics %K (blue) had a bullish cross above the %D (purple) and entered back into the critical zone (80) a few days back then defended it and now it’s pointing up, looking like it wants to go higher.
RSI (bold blue - 14) broke above the ema (white - 21) and entered the critical territory looking like it wants to go higher. If we keep going higher we may create some bearish divergence depending on how many candlesticks it takes as well as if RSI doesn’t get above and close above the 87.5 reading, if it were to get above that level it would invalidate the divergence. On that same note, if it takes more than a few candlesticks then that would also invalidate the divergence due to RSI reading being 14 and the number of candlesticks that go back to that high would be more than 14 (same thing for stochs divergence) so that would invalidate the divergence. If we look at the higher time frames, these are way more probable to creating divergence and it’s something I want to discuss for the 2 and 3 Day charts.
Daily looks like it wants some higher prices, my target is around the $9,500 area although I could see us get all the way up near $10,000. At that point I am expecting a pretty severe retracement but will speak about this in a different series.
To bring up the other side of things, if we put in a local top at $9,000 then bearish divergence would play out and that would take us down to around the 21 ema around $7,600 which wouldn't be what the bulls want and could be an indication that this may be our our longer term local top to send us back down to the $6,000 - $5,000 region. Of course this is the least likely thing to happen in my opinion but want to be prepared for if it does happen. 4 hour closes below $7,600 would be a sell for me.
Coin Savvy, signing off. Enjoy your night, enjoy the charts, and respect the technical analysis.
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