Hello all and good morning to everyone!
BTC has broken above the highest candle close of 2019 and is now back testing as support. The developing candle has reached the 1.272 resistance level with an upper wick and If we start to pull back now the areas of interests are marked on the chart with crosshairs. It is expected that we reach the 1.618 extension based on the weekly descending broadening wedge that we have been following for quite some time now. It is very significant to close the weekly at these levels here but we must be prepared for that not to happen and for the lower levels to come.
On the 1D chart we can see how this weekly level is now providing a support with a potential hidden bullish divergence forming on the MACD. The stochastic RSI has bottomed out.
The 4H chart shows us more detail to the precision of this support unfolding currently. A falling wedge with bullish divergence has just occurred placing our target back at the local high. This rising consolidating has higher highs and higher lows which is inherently bullish when in an uptrend.
Overall , the weekly candle pattern can be described as bearish for a number of reasons, but can also be argued for bullish due to the circumstances of support. The lower time frame price action is suggesting the 11.4 level has been defended well enough to start pushing price back up. The perceived bearish rising consolidation will lead many to believe this run up has concluded when in Bitcoins past has only meant a pause in the scaling of price.
Upside eventual target is $14,700 with stops along the way. Breakdown targets can go as low as $8,800.
Not financial advice.
BTC has broken above the highest candle close of 2019 and is now back testing as support. The developing candle has reached the 1.272 resistance level with an upper wick and If we start to pull back now the areas of interests are marked on the chart with crosshairs. It is expected that we reach the 1.618 extension based on the weekly descending broadening wedge that we have been following for quite some time now. It is very significant to close the weekly at these levels here but we must be prepared for that not to happen and for the lower levels to come.
On the 1D chart we can see how this weekly level is now providing a support with a potential hidden bullish divergence forming on the MACD. The stochastic RSI has bottomed out.
The 4H chart shows us more detail to the precision of this support unfolding currently. A falling wedge with bullish divergence has just occurred placing our target back at the local high. This rising consolidating has higher highs and higher lows which is inherently bullish when in an uptrend.
Overall , the weekly candle pattern can be described as bearish for a number of reasons, but can also be argued for bullish due to the circumstances of support. The lower time frame price action is suggesting the 11.4 level has been defended well enough to start pushing price back up. The perceived bearish rising consolidation will lead many to believe this run up has concluded when in Bitcoins past has only meant a pause in the scaling of price.
Upside eventual target is $14,700 with stops along the way. Breakdown targets can go as low as $8,800.
Not financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.