Bitcoin - Calm before the storm
Hello traders, I hope you are having a green day.
Bitcoin finally broke above the 8500 region that we were waiting all these days, confirming another leg higher. However, after breaking above bulls somehow lost the momentum and it went back to retest this same exact level.
I mentioned in prior articles that this is a crucial level which will dictate our next moves, judging by that we don't really have any major resistance levels to the upside until 10,000, so pretty much 9900-10000 is a matter of time now if this momentum sustains.
If you have checked the last articles you know that bitcoin struggled to break above 8200, this is the exact level that upon breakout took us to 8900 in a few minutes thus, I expect prices to consolidate in the grey box that I have highlighted with spikes to 8200 which has not been retested yet and it will also result with the third touch of the trend-line which would take us higher.
8200 level also confluences with the 50% FIB retracement ( I kept the Fibonacci levels outside of this analysis for the sake of keeping the chart clean ), looking at the EMA's you can see that we are over extended right now, and this is why I think we can see a retest of this level and a consolidation looks healthy before going higher.
Bitcoin finally broke above the 8500 region that we were waiting all these days, confirming another leg higher. However, after breaking above bulls somehow lost the momentum and it went back to retest this same exact level.
I mentioned in prior articles that this is a crucial level which will dictate our next moves, judging by that we don't really have any major resistance levels to the upside until 10,000, so pretty much 9900-10000 is a matter of time now if this momentum sustains.
If you have checked the last articles you know that bitcoin struggled to break above 8200, this is the exact level that upon breakout took us to 8900 in a few minutes thus, I expect prices to consolidate in the grey box that I have highlighted with spikes to 8200 which has not been retested yet and it will also result with the third touch of the trend-line which would take us higher.
8200 level also confluences with the 50% FIB retracement ( I kept the Fibonacci levels outside of this analysis for the sake of keeping the chart clean ), looking at the EMA's you can see that we are over extended right now, and this is why I think we can see a retest of this level and a consolidation looks healthy before going higher.
Related publications
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.