BTC Update! Bull breakout we were eyeing comes through!
Well jumping off last couple of charts. Two charts ago we were expecting a high probability of all 4 of our lower supports to crash together and we saw that with BTC bottoming to $6106. With that same crazy hour or two candle span, we ran up to $6511 to establish a 4th resistance point in the $6500's as well.
Last chart I spoke about the positive being similar to the bear side where they would crash all the supports and give us the strong spike down that now the bulls would be seeking to crash through all the resistances in 6500s at the same time to give us a bull break up. And over night we saw that with bulls first cracking $6511 and then double topping at $6530 before eventually pushing through there, $6565 and $6580 to break out quickly to $6738. We were also watching the BTCUSDSHORTS chart to see if shorts would have to start covering. The shorts gave their clue they may be giving bulls the space to run as they did start covering positions hours before the bulls really showed up so unfortunately did not get much of a true short squeeze in my opinion.
We are now seeing some sideways healthy consolidation as the bulls will seek to make another leg up as they cool off some RSIs on lower time frames. We established $6337 as our nearest support now and $6106 below that.
We have to zoom out towards daily chart now to see where our resistance is and daily chart still has a lot of work but the bulls were able to get above EMA resistance and currently rejected off 100 MA. I personally am expecting bulls to top out pretty soon here to consolidate further down but perhaps they can push towards 7k before doing so. $7400 level is the level to be watching closely in my opinion. This is where the weekly equilibrium resistance currently sits so I am expecting a lower high compared to $7400 and on current week our downtrend line for weekly sits around $7200 with next weeks being closer to $7000. If the bulls can approach those areas it would be very impressive and have me leaning more bullish on the weekly equilibrium break. Otherwise I remain neutral on weekly chart and await to see which way the pattern breaks. In my opinion, the ideal setup for the bulls is a lower high here, another higher low compared to $6106 and then break bullish on weekly for a higher high. Bears will be watching to scale in on a lower high and then seek a beak break down through $6100 and ideally for bears down to new lows for 2018.
Just My 2 Sats!
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