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BITCOIN – Traders should be vigilant with what’s coming next for BITSTAMP:BTCUSD by aloo2k

Hey everyone,

Quick update on the Bitcoin chart. As you can see, things are going as planned with the technical analysis and we now have a clearer picture with what’s coming.

Today, the fundamentals was on our side at a very good timing. Let me recap what happened, the Federal Reserve chairman’s, Jackson Hole, did an address to begin tapering bond purchases by the end of the year. This consequently led to Treasury yields and the dollar valuation to fall. While U.S. equities and Gold gained. Cryptocurrency was no exception.

However, traders should be really vigilant with Bitcoin in the next hours. Let me tell you why:

1. While we bounced from the rising channel , we need a higher high and higher low to confirm the market’s confidence in the 4h timeframe. Currently, we only have the latter… This is why it’s very important to have a higher high for continuation of the channel because if we don’t, we might have a head and shoulders pattern coming to play.

2. Big resistance in the 51k and 52k price due to the Fibonacci golden pocket being there (0.618 and 0.65 levels).

3. Lower volume the higher we go. The decrease in volume as price goes up worries me. This indicates that a big move is incoming. But it also shows that the bulls are losing steam and probably needs a short break before going to the 🚀

4. The RSI is still showing a bearish divergence. To invalidate this behavior, we need a higher high in the RSI .

Now, what are my targets. For those who are following me, it’s clear that the 20 Week SMA (the red line) from the bull market support band is the point in which I’m planning to buy back in. But do note that we also have support from the 0.382 Fibonacci level that coincides almost perfectly with the 20 Week SMA . In the past, it acted as resistance that later became support as shown with the red ellipse drawing. I’m expecting this to happen again as this would should tremendous support for the bulls to keep the up trend. It would also be less riskier 😃

That’s all for this analysis! Be sure to follow me to stay up to date with my work and drop a like if you enjoyed it.

Yours truly,

Aloo2k

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