Here were are again my crypto heads! Bitcoin has made a push higher and run out of steem at the 6,800 area. So let's figure out what we should be looking for as price battles this area for the 150th time.
The Battle of Evermore
Looking at the chart below you can see we got a strong move on solid volume the previous four days taking us right to the 6,800 area.
Given that the area was our initial upside price target (and a resistance level) it makes sense we did not blast on through...
What Now?
Well, it is pretty simple. We wait for price action to give us a signal.
We know the two things that can happen here:
- Price breaks through 6,800 and closes above it
- Price fails to close above 6,800 and turns lower
You are welcome to anticipate, but there is no real good risk/reward trade here except on the down (short) side as you can use a close above 6,800 as a stop loss and your down side potential is atleast 6,500 if not lower. I'm sitting on the sidelines rather than gamble on a short right now.
If we were to pull back off 6,800 then I would like to see us hold 6,500 as that would create a higher low and be par with the last little top we had.
So in the end we are all rooting for one thing. A break and price close above 6,800 followed by a second day/candle close above 6,800.
This would open up price action to have upside potential of 7,400.
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Disclaimer: All info in this post is my opinion and for informational purposes only