Daily pivot cleared as a bullish indicator
Good morning, traders. I hope you had a relaxing weekend. Apparently Bitcoin has no chill which has traders quite confused, but we've actually received a lot of information over the past few days if we've been paying attention.
Bitcoin closed the July 7th daily candle above the daily pivot. A breach of the pivot from below, and subsequent close above, is considered bullish. In breaching that pivot, price also broke out of the diamond pattern, which means we should expect it to target the extended ascending red line which served as the pattern's resistance. Yesterday's candle is known as an inside bar which should just be a pause for consolidation before resuming further upward movement. Today's candle is also currently representing a pause as it stands. At this point, it appears that we could potentially see a retest of the pivot at $6640, but ultimately we should see price rising toward R1 at $7530 before we get a correction. A close above above the mother bar's high of $6839.40 sets up this further price appreciation. However, a close below the mother bar's low at $6511 signals a test of the $6300 area at least. Volume has been dropping, but a breach of that mother bar's high should result in increased volume. If price manages to hit R1 before correcting, then we will most likely see price retracing to the pivot before bouncing higher and targeting the descending wedge's resistance line around $8100-$8200, depending how long it takes price to get there. Finally, we can see that price is consolidating right on/below the resistance line of a descending broadening wedge, suggesting further price appreciation.
The weekly close, yesterday, looked great, however we need to see this week's candle close above $6899. Failure to do so may be a precursor to a retest of recent lows. We really need to see a weekly close above $7779. This doesn't mean it has to be this week or next week's candle, just that price needs to follow through from its current position. The sooner we get there the greater the FOMO though.
Bitcoin closed the July 7th daily candle above the daily pivot. A breach of the pivot from below, and subsequent close above, is considered bullish. In breaching that pivot, price also broke out of the diamond pattern, which means we should expect it to target the extended ascending red line which served as the pattern's resistance. Yesterday's candle is known as an inside bar which should just be a pause for consolidation before resuming further upward movement. Today's candle is also currently representing a pause as it stands. At this point, it appears that we could potentially see a retest of the pivot at $6640, but ultimately we should see price rising toward R1 at $7530 before we get a correction. A close above above the mother bar's high of $6839.40 sets up this further price appreciation. However, a close below the mother bar's low at $6511 signals a test of the $6300 area at least. Volume has been dropping, but a breach of that mother bar's high should result in increased volume. If price manages to hit R1 before correcting, then we will most likely see price retracing to the pivot before bouncing higher and targeting the descending wedge's resistance line around $8100-$8200, depending how long it takes price to get there. Finally, we can see that price is consolidating right on/below the resistance line of a descending broadening wedge, suggesting further price appreciation.
The weekly close, yesterday, looked great, however we need to see this week's candle close above $6899. Failure to do so may be a precursor to a retest of recent lows. We really need to see a weekly close above $7779. This doesn't mean it has to be this week or next week's candle, just that price needs to follow through from its current position. The sooner we get there the greater the FOMO though.
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