Bitcoin is being held back by the 2nd arc of the 5th arc pair on the 8-hour chart.
To get a better idea of how the market is respecting the setup, look at a close-up of the above chart:
As you can see each and every facet of the setup, the top of the square, the 1×1 Gann angle, the 1st arc of the pair, and now the 2nd arc of the pair, have all acted as resistance and support in the past several days.
So what does it mean?
The first thing I note is that the price punctured the 5th arc, albeit briefly. While it was pulled back inside the arc pair shortly thereafter, there is still evidence that the arc is vulnerable. I suspect price will post a close on the sunny side of the arc in the not-distant future.
Having done that, resistance will be seen at the top of the 4th and 5th squares. $994 AND $1122 respectively.
However, the daily chart seems even more bullish than that. Note that the chart has posed a close above/at the 1 line of this long-term pitchfork:
Of course, it is close enough to the 1 line to be called “at” the line, rather than above it. But still, it is bullish.
Let’s overlay a long-term Gann setup on the same chart. (I know it gets confusing, but refer to the above chart for assistance in seeing which lines are which):
Here we see the 4th arc pair will be hit in the $1120 range, but note that convergence of the 1×1 (red arrow), pitchfork (blue arrow), and 2nd arc of the pair a bit higher, at ~ $1175.
While one never knows for sure, it would not be surprising if price were pulled to that point as if by a magnet. Time will tell.
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.
