Hi friends! Welcome to this update analysis on bitcoin! Let’s get right to it. Looking at the hourly chart, you can see that was able to break above the pink dotted that was featured on the last analysis. If you recall from that analysis, I was not very optimistic about upside trading there, because of the high amount of overhead resistance. I wrote going long on a breakout above the pink dotted “is a risky trade, because there is a lot of falling overhead resistance.” Looking at the chart, we can see that produced a strong breakout above the pink dotted , but ran into powerful resistance at the midline of the channel (dashed blue .) Since then, has rolled back over, and it appears to be moving in for another test of the bottom of the . If the is broken, will fall towards the recent lows around $3675 — likely resuming the fall toward $3000. On the other hand, if holds inside of this , and particularly if it breaks above the midline of the channel, we could see a quick rise toward $5000.
Keep in mind that we are looking at the hourly time-frame. On the , this action looks much more like a big . Interestingly, the bottom of the blue is the bottom of the potential on the . So, if the bottom of this is lost, the bottom of the on the will also be lost, which will make a visit to $3000 extremely likely.
So, keep a close eye on the bottom of this channel. If it breaks on high , and especially if price returns to confirm it as resistance, that would be a powerful sell signal that could produce some fast and easy gains for the shorts. With that said, the bulls need to defend it with all of their might.
I’m the master of the charts, the professor, the legend, the king, and I go by the name of Magic! revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Published at Sun, 02 Dec 2018 20:13:53 +0000
