Bitcoin did another great run and reached all the way up to $8,500 where resistance was just too strong to continue its climb up.
But the bulls are happy, Bitcoin had some huge volume yesterday and it is looking pretty solid, consolidation is looking strong.
After such a nice ride, we can expect a retrace. A retrace can take just a few hours, as it can take days. Sometimes up to several weeks is possible for the consolidation phase.
Now, we have a few scenarios to look at, let's get to it:
1) Bitcoin consolidates sideways. There is the possibility of Bitcoin going sideways, based on the strength, momentum and movement we've seen in the past few days. This sideways consolidation can happen around the $8,000 - $8,200 price range.
2) Bitcoin retrace. A normal retrace can take us back to $7,855+ followed by $7,400, $7,000, $6,800, etc, if the first level doesn't hold the next one activates. I will be tracking the charts and let you know as things develop. Right now I am using $7,855+ as my main strong support for the short term based on the daily timeframe charts.
3) Bitcoin goes down. This is less likely at the moment and would need confirmation first. But if Bitcoin breaks down and goes below $7,400 and closes below it, fast, then we revisit the charts and see if the bears want to take control. This can take a while, as the weekly candle comes into play if this scenario turns on.
Just having a quick look at different scenarios... for your learning, entertainment and of course, to have some fun.
Note: The weekly timeframe is building up nicely, this week can be important to determine how future weeks will go. We are looking very positive already, and MACD about to have a bullish cross...
Take care...
I Love & Enjoy Life...
Namaste.