In the next few days, I am expecting some major price action to occur in Bitcoin. As I analyze the charts, from a purely technical perspective, I see many signs that indicate the price will shoot up. Of course, there is always a chance we could go the opposite way as well. And thus, caution should be exercised as we flirt with these lower levels. If we do break through our supports, the drop will be UGLY! Very ugly! However, as I've stated before, as long as we remain within the channel I've drawn, I remain very bullish on Bitcoin.
Here are a few of the indicators that I can see which help point to the upward direction of Bitcoin in the next few days. Let's all hope we are not being deceived by these chart indicators.
Convergence of (4) four major supports:
- $2420 support
- 50 MA
- Bottom Bollinger Band
- Bottom of channel
Additionally, we have observed a couple of weeks of healthy consolidation, contracting Bollinger Bands, and we are once again headed into oversold territory according to the RSI.
With all of these signs, I suspect that within 3-4 days, we will see price action shoot up like the 4th of July fireworks.
Happy Independence Day my American friends and as always happy trading!