Bitcoin - Bull run or Bear Trap?

Currently, it is 20:55 UTC time in the current Bitcoin price on the Bittrex 4 hour chart is 8849. We've had a nice run-up over the last few hours from the $8500 area.

The price is over the nine-period moving average and has just crossed the 50-period moving average on the four-hour chart. These are both positive signs, and therefore I feel we have a significant chance of further gains.

While there is a lot of pent-up desire on the part of the Bulls to charge upward in price, remember that the Bears are waiting below with their jaws open.

While we have firmly escaped the bounds of the descending wedge formation, we are still within the greater Triangle formation that shows as dark red on my current chart. Be aware that this dark red line is an upper resistance line above us, so whenever the price of Bitcoin is attempting to intersect this descending dark red line coming from above will be a point of caution and possibly a pullback. If it's a pullback it will be to consolidate the gains until that point and then make another attempt to cross that descending trendline.

As of now, Bitcoin is approaching 0.5 Fibonacci level at $8814 is calculated on the last drop from $11,600 area down to $7340. Should the price of Bitcoin close a candle above $8814 then it is likely we will continue to the next resistance at approximately the 0.618 Fibonacci at $9483.

Should this upward price movement break down, I would expect some support at $8144. $8144 has proven to be a solid support on at least three occasions in the past. Remember that our support levels below this are at $7315 and $5964 if it should go badly. Then a new move up.

Try to keep all of the support and resistance lines in mind as you plan your position. Remember, you should be only trading a small percentage of your total long-term investment portfolio.

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All statements and expressions I offer are my opinions, and not meant as investment advice or solicitation. Information provided is not personal investment advice. Seek guidance from a professional investment advisor before trading or investing. Trading cryptocurrencies can be a potentially profitable opportunity for investors. You should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose. I am not a registered investment advisor.

Wishing you success,

Isaac

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