Bitcoin Volatity Imminent, $8,250 Target Possible
Another day of Bitcoin consolidation has lead to a potentially explosive situation while I write today. Tremendous bullish momentum continues to prop up price, so let look at how long it might last.
On the hourly analog Bitcoin Bitfinex chart, we are looking at some sideways chop while the bulls and bears duke it out to determine what’s next. Price rallied yesterday evening all the way up to previous highs at $7,756 before down-trending slightly lower most of the day to our current low of $7,624.
The bears have really been trying to push price back down, but the bulls are putting up a strong fight to hold price above this $7,700 level. I have dropped at purple horizontal support line here because you can see how many wicks there are heading down past that level to $7,650 and price immediately pushes back up.
It was neat how on yesterday’s rally the black line 200 hour moving average almost bearishly crossed over the blue 50 hour moving average because they were almost touching one another and there was the immediate price spike to keep the moving averages in a bullish configuration.
The 50 hour moving average is also providing strong support at the $7,650 level and will only squeeze the vice tighter on the bears if they are unable to break that level.
I did move the black horizontal line up on the top of the black ascending triangle that a bit bigger than this snapshot because it seems to work better than the $7,650 level I was using yesterday. So if price can get above the $7,750 level I think price will have liftoff to at least $8,250 before encountering any significant resistance.
You also may remember I placed a pitchfork on this uptrend yesterday to get an idea where price may be bouncing around between. The 1 standard deviation blue line in the lower quadrant is providing nice channel support for now, but price can’t seem to get back through the red median line that runs down the heart of the pitchfork.
That median line currently resides at $7,885 and if it breaks there, will provide additional fuel to the fire on the upside. The RSI indicator is also resetting nicely to a fairly neutral level at 46.69, and even though the MACD is currently bearish and trending downward that could quickly change, especially even some of these other signs I have outlined.
On the daily analog Bitcoin Bitfinex chart, not a whole lot has changed, but what I find interesting is that the 50 day moving average is about to run right into the up-trending pitchfork here at $8,459 and could also be another resistance/sell point by this weekend.
The RSI is pretty neutral to bullish again and the MACD is trending bullish but also quite weak for now residing below the zero line on the indicator. Crossing above the zero line would be a nice signal, but we are still pretty far from it at -219. Volume is still dropping off, so it’s just a waiting game here that should resolve in the next 48 hours.
I wanted to include an update on the logarithmic Bitcoin chart here as well, but was having a difficult time making what I thought worked fit nicely, so I left it out because I didn’t want to force it. Sometimes, less is more with technical analysis.
Let’s hope for some more volatility tomorrow.
-More at vanddar.com
On the hourly analog Bitcoin Bitfinex chart, we are looking at some sideways chop while the bulls and bears duke it out to determine what’s next. Price rallied yesterday evening all the way up to previous highs at $7,756 before down-trending slightly lower most of the day to our current low of $7,624.
The bears have really been trying to push price back down, but the bulls are putting up a strong fight to hold price above this $7,700 level. I have dropped at purple horizontal support line here because you can see how many wicks there are heading down past that level to $7,650 and price immediately pushes back up.
It was neat how on yesterday’s rally the black line 200 hour moving average almost bearishly crossed over the blue 50 hour moving average because they were almost touching one another and there was the immediate price spike to keep the moving averages in a bullish configuration.
The 50 hour moving average is also providing strong support at the $7,650 level and will only squeeze the vice tighter on the bears if they are unable to break that level.
I did move the black horizontal line up on the top of the black ascending triangle that a bit bigger than this snapshot because it seems to work better than the $7,650 level I was using yesterday. So if price can get above the $7,750 level I think price will have liftoff to at least $8,250 before encountering any significant resistance.
You also may remember I placed a pitchfork on this uptrend yesterday to get an idea where price may be bouncing around between. The 1 standard deviation blue line in the lower quadrant is providing nice channel support for now, but price can’t seem to get back through the red median line that runs down the heart of the pitchfork.
That median line currently resides at $7,885 and if it breaks there, will provide additional fuel to the fire on the upside. The RSI indicator is also resetting nicely to a fairly neutral level at 46.69, and even though the MACD is currently bearish and trending downward that could quickly change, especially even some of these other signs I have outlined.
On the daily analog Bitcoin Bitfinex chart, not a whole lot has changed, but what I find interesting is that the 50 day moving average is about to run right into the up-trending pitchfork here at $8,459 and could also be another resistance/sell point by this weekend.
The RSI is pretty neutral to bullish again and the MACD is trending bullish but also quite weak for now residing below the zero line on the indicator. Crossing above the zero line would be a nice signal, but we are still pretty far from it at -219. Volume is still dropping off, so it’s just a waiting game here that should resolve in the next 48 hours.
I wanted to include an update on the logarithmic Bitcoin chart here as well, but was having a difficult time making what I thought worked fit nicely, so I left it out because I didn’t want to force it. Sometimes, less is more with technical analysis.
Let’s hope for some more volatility tomorrow.
-More at vanddar.com
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