BTC Pitchforks Providing Support; Big Price Pop Tomorrow?
After a disappointing evening and a bit of the scare, the Bitcoin and crypto market had a nice rally today to reverse most of yesterday’s losses. Let’s take a look at where it may be off to next.
Per usual we have our hourly analog Bitcoin Bitfinex chart to which I have applied a pitchfork to which tells a nice story. I took the swing high on Sunday of the high at $7,779 to use as the pivot and then the swing low and swing high again from later in the day to create the down-trending pitchfork.
You can see how with each hour's candle movement that the individual channels in the pitchfork contain the price movements pretty nicely. A standard pitchfork typically consists of the red median line and then various standard deviations (sd) from that median, on this pitchfork they move out by half a sd with each color, with the red lines on either end of the pitchfork representing 2 sd.
I enjoy seeing how price came down and bounced around overnight and put in that final red candle at midnight EST, as a low at $7,382 right at that 2x sd red line and then climbed all the way back up to the other end of the pitchfork today where it’s showing some hesitation to break out further to the upside around $7,621.
Granted earlier, the dark blue long term uptrend line also provided support on the bottom last night, but it’s pretty neat how the pitchfork worked better at predicting the low. The turquoise colored declining wedge buried amongst the pitchfork colors what also indicative of a breakout to the upside today.
Interestingly enough, someone apparently does not want price breaking out of here, as you can see the big volume candle dropping price down to the 50 hour moving average over the last few minutes, but already price has rallied back up and out of the pitchfork. I guess I need to write a bit faster here.
The RSI is getting to oversold levels as well, so we could see price trend lower over the next few hours riding on the outside of this pitchfork, maybe until the 50 hour moving average begins to curl back up for support.
The MACD lines are also beginning to curl lower too and the histograms lines are starting to trend downward again bearishly. If price does get hammered back again into this pitchfork, the dark blue line up-trending line will provide support at $7,400 again. To the upside price will need to get back above that black line at $7,720 to make any bullish progress.
On the daily analog Bitcoin Bitfinex chart and in the spirit of pitchforks you can see this steep down-trending pitchfork containing price the last few weeks.
Notice how price came down and got 1 sd below the red median line to the edge of the blue channel, and over the next several days headed back towards it. Price then finally popped over the median line on May 29th and preceded to exit the pitchfork Sunday, June 3rd.
Now we have price retesting the outside of that pitchfork to see if it’s ready to move on, and now that sets price up for a big opportunity to the upside in the next day or so. If today’s green candle can hold and stay out of that pitchfork as well as above the lime green line at the $7,500 horizontal support, price may be looking at a big jump similar to April 12th, which kicked off a bull rally.
Frankly, I think this looks very similar to the bottom in April and if we have some patience over the next 48 hours or so, your longs will be rewarded.
The RSI is looking great and the MACD lines have bullishly crossed over now as well, which also would allude to a price jump to at least 8K in the next few days. As discussed yesterday, on the last bottom in April it took 3 daily candles after the MACD crossover for price to pop almost $1,400 in one day. I circled in black the MACD crossovers on the chart below. Tomorrow June 6th would be that 3rd candle this time around.
Have a good day.
More on Vanddar.com
Per usual we have our hourly analog Bitcoin Bitfinex chart to which I have applied a pitchfork to which tells a nice story. I took the swing high on Sunday of the high at $7,779 to use as the pivot and then the swing low and swing high again from later in the day to create the down-trending pitchfork.
You can see how with each hour's candle movement that the individual channels in the pitchfork contain the price movements pretty nicely. A standard pitchfork typically consists of the red median line and then various standard deviations (sd) from that median, on this pitchfork they move out by half a sd with each color, with the red lines on either end of the pitchfork representing 2 sd.
I enjoy seeing how price came down and bounced around overnight and put in that final red candle at midnight EST, as a low at $7,382 right at that 2x sd red line and then climbed all the way back up to the other end of the pitchfork today where it’s showing some hesitation to break out further to the upside around $7,621.
Granted earlier, the dark blue long term uptrend line also provided support on the bottom last night, but it’s pretty neat how the pitchfork worked better at predicting the low. The turquoise colored declining wedge buried amongst the pitchfork colors what also indicative of a breakout to the upside today.
Interestingly enough, someone apparently does not want price breaking out of here, as you can see the big volume candle dropping price down to the 50 hour moving average over the last few minutes, but already price has rallied back up and out of the pitchfork. I guess I need to write a bit faster here.
The RSI is getting to oversold levels as well, so we could see price trend lower over the next few hours riding on the outside of this pitchfork, maybe until the 50 hour moving average begins to curl back up for support.
The MACD lines are also beginning to curl lower too and the histograms lines are starting to trend downward again bearishly. If price does get hammered back again into this pitchfork, the dark blue line up-trending line will provide support at $7,400 again. To the upside price will need to get back above that black line at $7,720 to make any bullish progress.
On the daily analog Bitcoin Bitfinex chart and in the spirit of pitchforks you can see this steep down-trending pitchfork containing price the last few weeks.
Notice how price came down and got 1 sd below the red median line to the edge of the blue channel, and over the next several days headed back towards it. Price then finally popped over the median line on May 29th and preceded to exit the pitchfork Sunday, June 3rd.
Now we have price retesting the outside of that pitchfork to see if it’s ready to move on, and now that sets price up for a big opportunity to the upside in the next day or so. If today’s green candle can hold and stay out of that pitchfork as well as above the lime green line at the $7,500 horizontal support, price may be looking at a big jump similar to April 12th, which kicked off a bull rally.
Frankly, I think this looks very similar to the bottom in April and if we have some patience over the next 48 hours or so, your longs will be rewarded.
The RSI is looking great and the MACD lines have bullishly crossed over now as well, which also would allude to a price jump to at least 8K in the next few days. As discussed yesterday, on the last bottom in April it took 3 daily candles after the MACD crossover for price to pop almost $1,400 in one day. I circled in black the MACD crossovers on the chart below. Tomorrow June 6th would be that 3rd candle this time around.
Have a good day.
More on Vanddar.com
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