Bitcoin Price is Straddling Key Resistance and Support Here
We haven’t looked at Bitcoin in a few days, so today let’s look again at the daily chart, to get a look at the medium-term environment. Here is the bull setup we looked at in the recent past:
As you can see, pricetime is meandering it’s way through the 3rd arc pair. Longer term this is bullish because when it gets out of the arc pair it is likely to rise again. But until it gets to the other side, with a strong close above the arc, it’s not so clear what will happen while its in the pair itself.
The red vertical line shows that tomorrow is 120 degrees since the spike low of 6/22. So we are at a point in time that we can expect something might begin tomorrow. But what? A reversal or an acceleration?
We will look at a bear setup from the high to see what it suggests:
We saw this bear setup previously. The 1st 2 red arrows indicate that the markets respects the setup. But note the 3rd arrow at the present day. We are now EXACTLY on 4th arc support, and sitting on the Gann 2×1 angle which has been resistance for a few days now. IF we get a daily close above 641 we will have indication that the arc support is stronger than the 2×1 resistance, and we can feel a bit comfortable with our long positions. A close lower than 638 though will be decidedly bearish, at least in the short term.
Lets finally look at an Andrews pitchfork and see if it can offer any further insight about the present moment:
As you can see at the 1st arrow, the blue dotted line was resistance, as expected. But pricetime is now sitting EXACTLY on the 1.618 extension of the pitchfork. For now, this is acting as support, suggesting that a long entry here might be a good idea. But a TIGHT stop just below the current levels is called for. Why? Because if support breaks here (unexpected but possible) price might fall sharply, at least temporarily.
Happy trading!
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Image from Shutterstock.
