Finally we have reached major support for Bitcoin. We reached the important 61,8% retracement area arount 7500-7600 and we got some decent volume coming in at the lows of the day. Now, lets have a look at the daily chart:
Comment: From the chart we can see that we formed a nice looking hammer for the day and that we touched the very important support level from back in November. This could be key here going forward.
If you watch the video I am also showing you the hourly volume during the dip and how that compares to old dips.
Now, is this enough, will we bounce off from here? I dont know, nobody knows, but Im helluva more bullish now that I have been in the last 2 months.
What could happen next is that we could retest the support again and make a double bottom or we could start moving back up from here right away.
Today (Saturday) it does look like we are forming another hammer and if we close today above the important 200 day moving average, we could be on the right track.
However, I want to end this analysis by having a look at the area line chart:
Comment: It does look fairly good at the moment, but we do have a long journey ahead of us (or quick in the crypto world) because we absolute must have a daily close above 11700 which is the last major peak. So pay a lot of attention to that in the near term if we will continue to go up.
Happy investing!