BTC Bullish - Is There Room To Run?
Keys To The Chart
Red Danger Zone 1 - Heavy resistance 8375 to 8475
Red Danger Zone 2 - Confluence of resistance indicators $8950 - $9225
The Yellow Circles are zones of maximum risk to upside movement.
The 50 Period MA has crossed upward on the 200 MA. That is where the current leg up started. But notice that the 50 MA is also respecting the bottom of the ascending triangle as well, could this point to the floor of BTCs safe downside price in the current leg?
Bitcoin is trading in a small channel bounded by turquoise trend lines. A break to the upside leads directly into heavy price resistance in Red Zone1. A break from the channel to the downside points to the 200 period MA line (yellow) and the Fibonacci line at $7829 for support on the downside. A small rebound on the way down is likely at the 200 MA.
It seems to me that this Bitcoin market needs a stronger corrective move at this time in order to get some legs under it for an upward move that should carry to $11,600 with some stops along the way.
The dotted turquoise lines forming an upward pointing cone illustrate the projected path of possible trading before a breakout to a corrective move. I feel this is the best depiction of the price move upward that is currently happening. As the cone tightens, BTC will likely fail to hold its upward movement in the area of $9000 and take a sharp downward path to shake it off.
There is resistance at 7829 and 7200 both are points at which a downturn should be reversed to the upside. If that support fails, there is support at 6514 that is noteworthy and this could be the rebound point. If not then we must test the $5950 area.
Summary: There is money to be made here if you are nimble enough. This is no place for investors to play the market, or the less experienced. Maybe some room here to take some shorts with a stop loss above the 200 MA if you play margin, I don't and I don't recommend it. The crypto markets just move too fast.
I would not enter a long trade or a swing trade here either, better deals are coming soon.
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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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