BTC - Is this the beginning of new run?
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Hello guys!
I want to share my thoughts and observation on BTC.
As we all know, BTC was rejected at 10k$ resistance. After that rejection, BTC dropped all the way down to the 0.786 fib support of last cycle.
0.786 is very common area for trend reversal. When 7100$ bottom was touched, there were some clear signs of bullish divergence on RSI and MACD indicators on higher time frames. (4h and even on daily).
What is bullish divergence? -Bullish divergence is a sign that we could face trend reversal. Bullish divergence is made when chart make lower low on price (7400 to 7100 in BTC case) but indicators make higher low. So, the price is dropping and in the same time indicators are gaining strength.
After that bullish divergence was formed, BTC bounced right up and never tested bottom again. In last week BTC formed really strong uptrend channel, which was tested more than a 5 times so far (cyan channel on chart). This channel represent very strong area of value and price movements. Being in this channel is considered as BULLISH (for mid term).
Resistances and supports:
Very strong resistance area is at 7700. This is first strong resistance that need to be broken for future growth. Once (IF) BTC breaks and stable above, will use that same area as a SUPPORT.
Next strong resistance is at 0.618 fib level of last cycle - 7800$. This will be hard to break because 0.618 fib is the strongest fibonacci level. First BTC need to break and stable above 7700$.
Lets move on supports areas.
First short term support is at 0.618 fib of last wave, around 7500-7520$. This is also at the bottom line of uptrend channel. I believe that BTC will test that support and hopefully bounce up from it. Next support areas are below uptrend channel, so we better hope that they don't get tested. First strong support area below channel support is 7400$.
My guess for future movements?
I believe that BTC will test 7500$ levels and find support there. After testing those supports, there is a lot of chances that BTC will bounce up and retest 7700$ resistance - possible break it and stable above.
I am currently bullish on BTC for mid term. Why?
- Strong bullish divergence was formed on the lower low
- RSI and MACD indicators are showing a lot of positive signals in current movements
- BTC is trending in uptrend channel
Join our new telegram group for Crypto discussion, we are willing to help with everything crypto related. Doing TA for any requested coins, posting detailed TA and signals, learning other members about TA!
Telegram: t.me/CherokeeTraders
Twitter: twitter.com/CherokeeTrades
I want to share my thoughts and observation on BTC.
As we all know, BTC was rejected at 10k$ resistance. After that rejection, BTC dropped all the way down to the 0.786 fib support of last cycle.
0.786 is very common area for trend reversal. When 7100$ bottom was touched, there were some clear signs of bullish divergence on RSI and MACD indicators on higher time frames. (4h and even on daily).
What is bullish divergence? -Bullish divergence is a sign that we could face trend reversal. Bullish divergence is made when chart make lower low on price (7400 to 7100 in BTC case) but indicators make higher low. So, the price is dropping and in the same time indicators are gaining strength.
After that bullish divergence was formed, BTC bounced right up and never tested bottom again. In last week BTC formed really strong uptrend channel, which was tested more than a 5 times so far (cyan channel on chart). This channel represent very strong area of value and price movements. Being in this channel is considered as BULLISH (for mid term).
Resistances and supports:
Very strong resistance area is at 7700. This is first strong resistance that need to be broken for future growth. Once (IF) BTC breaks and stable above, will use that same area as a SUPPORT.
Next strong resistance is at 0.618 fib level of last cycle - 7800$. This will be hard to break because 0.618 fib is the strongest fibonacci level. First BTC need to break and stable above 7700$.
Lets move on supports areas.
First short term support is at 0.618 fib of last wave, around 7500-7520$. This is also at the bottom line of uptrend channel. I believe that BTC will test that support and hopefully bounce up from it. Next support areas are below uptrend channel, so we better hope that they don't get tested. First strong support area below channel support is 7400$.
My guess for future movements?
I believe that BTC will test 7500$ levels and find support there. After testing those supports, there is a lot of chances that BTC will bounce up and retest 7700$ resistance - possible break it and stable above.
I am currently bullish on BTC for mid term. Why?
- Strong bullish divergence was formed on the lower low
- RSI and MACD indicators are showing a lot of positive signals in current movements
- BTC is trending in uptrend channel
Join our new telegram group for Crypto discussion, we are willing to help with everything crypto related. Doing TA for any requested coins, posting detailed TA and signals, learning other members about TA!
Telegram: t.me/CherokeeTraders
Twitter: twitter.com/CherokeeTrades
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