Is Bitcoin back?! Well.... we don't know for sure, but today was a positive step in the direction and we'll explain why.
Bitcoin for the last two weeks or so was uninteresting to follow after it barely grazed our target from $6,500 - $6,000. For those who got in below $6,500, congrats!!! We can clearly see a was formed and BTC was bouncing between the resistance and support for ten days or so. A break-out was imminent, it was just a matter of when and in which direction. It's a good habit to never trade until a pattern is broken.
Today, that pattern broke. It was clear the buy limit orders were closely watching the trend break, hence the sudden increase in buying after the pattern broke. Astute traders will typically adjust trailing stop loss limits and buy limits as the pattern progresses and that may certainly explain the trading spike.
We can see in the four-hour chart Bitcoin has pierced the downward trend channel resistance earlier in the day. It's now retesting the resistance at $7,900 (which coincides with the 200 ) to push forward to the next soft resistance 61.8% FIB retracement. We can expect some bear push back, however, if the bulls maintain control, the next strong resistance line coincides with the 50% FIB retracement from $8,800 - $9,000.
The SQZMOM and both indicate a strong in BTC over the last 24 hours. We're not out of a bear market yet, but if Bitcoin can break through out of the downward trend channel, we could enter into an accumulation zone and create higher-highs and higher-lows.
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As always, be smart with your money. Topics discussed in this post are not financial advice. DYOR