Roles of confluence zones
It has been a very interesting move from bitcoin, after a drop to touched the $10095 region, the price was immediately moves back to claim again the support around $10300 region to produce a long shadow on daily candle. This action could be a good representation of the bulls making their best effort to defend the $10000 region as a huge psychological support.
And looking at the chart that I've shared, the green dotted line is the resistance trend line if I want to exclude the bull trap region on previous action (body to body connecting method). And the second thing is the white region, those 2 white regions are the confluence zone between the fibonacci retracement and the fibonacci extention which I believe will act as a huge resistance for swingers. The first resistance zone is around the $10750 - $10800 region which is moving align with the green dotted line as resistance trend line. The second resistance zone is the confluence zone between golden ratio and the 1.1 fib extention.
My bias here is remain the same as before with a push to the down side for the big picture. but, I see a possible push to the first resistance zone with a bull trap region producing until the 2nd resistance zone if the $10300 region can defend the current price from further drop.
And looking at the chart that I've shared, the green dotted line is the resistance trend line if I want to exclude the bull trap region on previous action (body to body connecting method). And the second thing is the white region, those 2 white regions are the confluence zone between the fibonacci retracement and the fibonacci extention which I believe will act as a huge resistance for swingers. The first resistance zone is around the $10750 - $10800 region which is moving align with the green dotted line as resistance trend line. The second resistance zone is the confluence zone between golden ratio and the 1.1 fib extention.
My bias here is remain the same as before with a push to the down side for the big picture. but, I see a possible push to the first resistance zone with a bull trap region producing until the 2nd resistance zone if the $10300 region can defend the current price from further drop.
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