BTC Analysis 5/7/2020
Hey guys just wanted to do a very quick rundown on BTC and some Support/Resistance levels and how they might play out...
Much to my surprise we got a little bit more run up and just kissed 10k before dropping back down a little. To be perfectly honest I wasn't sure how long we could sustain above 9k and thought we would have seen a correction by now, but hey, nothing is certain and I don't have a crystal ball, so I try and remain objective. Volume is eh, ok but not amazing. Probably not enough to sustain current prices unless we see more if it come in soon. To me its looking like last minute FOMO buyers, as the halvening is just a few days away.
I see several ways this could go, so I color coded my lines. The cyan lines are just basic trend lines, mapping chart patterns (in this case, a triangle and a bull pennant) both of which broke out to the upside. The yellow line is our long term downward resistance line. starting from the highs in July 2019, touched again in February 2020 and rejected. The orange line is our yearly high at 10550. So what does this mean?
After our big spike up a week ago, BTC just did not want to stop in the 9-9.5k range, and broke up through that big downtrend. However, it only did so after overextending from an already impressive rally. Volume was lower and bearish divergences on 4H RSI, as well as extremely overbought on the daily (80.72). If traders can manage to keep price above this line, I have extreme confidence we will soon be revisiting the yearly high. If we can crack that resistance, I will be in full bull mode.
Now, if for whatever reason we break down of that trend line, we fall back into our 8.8k zone. This could give the bulls a little time to cool off and try to break 10k again with more conviction. If they succeed, see above. If they fail, then back down to retest our various S/R levels (8.2k,7.8k, 7.5k). A break down of 7.5k would get really ugly really quick, and could signal another visit to our yearly low.
I am cautiously optimistic about this, and still have 50% of my long position from 7720 opened.
I will keep a close eye and update again soon
Don't let FOMO get you
Much to my surprise we got a little bit more run up and just kissed 10k before dropping back down a little. To be perfectly honest I wasn't sure how long we could sustain above 9k and thought we would have seen a correction by now, but hey, nothing is certain and I don't have a crystal ball, so I try and remain objective. Volume is eh, ok but not amazing. Probably not enough to sustain current prices unless we see more if it come in soon. To me its looking like last minute FOMO buyers, as the halvening is just a few days away.
I see several ways this could go, so I color coded my lines. The cyan lines are just basic trend lines, mapping chart patterns (in this case, a triangle and a bull pennant) both of which broke out to the upside. The yellow line is our long term downward resistance line. starting from the highs in July 2019, touched again in February 2020 and rejected. The orange line is our yearly high at 10550. So what does this mean?
After our big spike up a week ago, BTC just did not want to stop in the 9-9.5k range, and broke up through that big downtrend. However, it only did so after overextending from an already impressive rally. Volume was lower and bearish divergences on 4H RSI, as well as extremely overbought on the daily (80.72). If traders can manage to keep price above this line, I have extreme confidence we will soon be revisiting the yearly high. If we can crack that resistance, I will be in full bull mode.
Now, if for whatever reason we break down of that trend line, we fall back into our 8.8k zone. This could give the bulls a little time to cool off and try to break 10k again with more conviction. If they succeed, see above. If they fail, then back down to retest our various S/R levels (8.2k,7.8k, 7.5k). A break down of 7.5k would get really ugly really quick, and could signal another visit to our yearly low.
I am cautiously optimistic about this, and still have 50% of my long position from 7720 opened.
I will keep a close eye and update again soon
Don't let FOMO get you
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