BTCUSD About to Break 45,500 Fibonacci Resistance Level
We have the following resistance and support levels which have formed a consolidation trend on the daily chart:
Two downward trend lines that BTCUSD has been respecting for several months, one several months longer than the other which is contained within the larger one (see dark vs light green downward trend lines)
An upward sloping support line which BTCUSD has been respecting for several months
Between these support and resistance lines, you have the same cone shaped consolidation between the two reflected in the RSI chart as well.
Currently BTCUSD has broken healthily above the two trend lines mentioned. Currently waiting to see if BTCUSD will break through the flat Fibonacci resistance line around $45,500 that has been holding for several months as well with several failed prior tests. Given that BTCUSD has already crossed two resistance lines in the last two weeks and in the upper stage of its daily RSI, I would expect the rally to slow for a bit around the resistance level of $45,500 which also coincides with the previously respected Fibonacci level. However, BTCUSD does have a habit of continuing rallies past 70 RSI during rallies so it is possible that we will skip that extra multi-week long consolidation phase around $45,500 altogether. I do expect price to break through this line though considering the overall volume of BTC buying the last several weeks by individual investors, institutional acceptance of regulating cryptocurrency instead of threatening it, and the technical aspects of the price breaking through the previous two downward trend lines with strong momentum.
If price breaks through that $45,500 threshold there will not be any other long term consolidation indicators holding it back from a large rally, at which point we would be in a price ceiling discovery phase and that resistance level would flip to support.
Two downward trend lines that BTCUSD has been respecting for several months, one several months longer than the other which is contained within the larger one (see dark vs light green downward trend lines)
An upward sloping support line which BTCUSD has been respecting for several months
Between these support and resistance lines, you have the same cone shaped consolidation between the two reflected in the RSI chart as well.
Currently BTCUSD has broken healthily above the two trend lines mentioned. Currently waiting to see if BTCUSD will break through the flat Fibonacci resistance line around $45,500 that has been holding for several months as well with several failed prior tests. Given that BTCUSD has already crossed two resistance lines in the last two weeks and in the upper stage of its daily RSI, I would expect the rally to slow for a bit around the resistance level of $45,500 which also coincides with the previously respected Fibonacci level. However, BTCUSD does have a habit of continuing rallies past 70 RSI during rallies so it is possible that we will skip that extra multi-week long consolidation phase around $45,500 altogether. I do expect price to break through this line though considering the overall volume of BTC buying the last several weeks by individual investors, institutional acceptance of regulating cryptocurrency instead of threatening it, and the technical aspects of the price breaking through the previous two downward trend lines with strong momentum.
If price breaks through that $45,500 threshold there will not be any other long term consolidation indicators holding it back from a large rally, at which point we would be in a price ceiling discovery phase and that resistance level would flip to support.
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