Yesterday bitcoin had a bullish break up to test the $6,800 supply/resistance zone. It was able to break through by a wick, before being quickly rejected by the bears. Please watch video analysis at the bottom of this article for much more detail.
If bitcoin can decisively break above $6,800, there’s not much resistance until $7,625-$7,700. To the down side, there’s a descent demand/support zone between $6,600-$6,530. I wouldn’t be surprised to see a drop to that level before another attempt up to break the $6,800 resistance.
Looking at the daily chart, we can see the 8 day EMA just barely crossed above the 21 day. This is a bullish sign...especially if it can remain there. Price was sitting on top of the 21 day EMA for the last few days. Ideally we’d like to see price rise above the 55 day EMA this coming week.
The 1 day RSI is about to test the descending resistance line. A break above would be a very bullish indication.
My primary count has bitcoin just completing an ABCDE correction from a leading diagonal. If correct, it’s now entering 5 impulse waves up.
Scenario 2 has bitcoin in an ABC correction, with wave C just beginning.
Please watch the below video analysis for MUCH more detail not included above.
Video Analysis:
Let’s see how the next 24-48 hours unfold.
BIAS:
Short Term: Slightly Bullish
Longterm: Very Bullish
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
Workin
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by Workin2005
