Quick analysis of long term BTC setup. The latest blow to BTC was failing the huge 10,000 psychological barrier despite the reverse head and shoulders pattern.
On a more positive note, we're seeing BTC build a strong support level at the 6000 - 6500 level. I would say the risk-to-reward ratio is generally favourable from this side of things.
BTC has seen lower highs, failing on both 38% and 23% fib, and higher lows, as indicated by the yellow circles. This indicates to be an overall squeeze and consolidation at this range. I would expect further consolidation at the fib red zone over the next couple days before retesting the 23% fib.
Notice the bullish divergence on the MACD, and generally oversold on the RSI.
There is a slight possibility that BTC retest its lows around the 6500-7000 level. Personally, i would wait this out, expecting an upward reversal at 7000-8000 range. Then again, it is not uncommon for a premature breakout from the wedge - to pick a specific entry buy, i would suggest using a shorter time scale like the 4 hour chart.
*Not financial advice and should not be interpreted as such :)*
On a more positive note, we're seeing BTC build a strong support level at the 6000 - 6500 level. I would say the risk-to-reward ratio is generally favourable from this side of things.
BTC has seen lower highs, failing on both 38% and 23% fib, and higher lows, as indicated by the yellow circles. This indicates to be an overall squeeze and consolidation at this range. I would expect further consolidation at the fib red zone over the next couple days before retesting the 23% fib.
Notice the bullish divergence on the MACD, and generally oversold on the RSI.
There is a slight possibility that BTC retest its lows around the 6500-7000 level. Personally, i would wait this out, expecting an upward reversal at 7000-8000 range. Then again, it is not uncommon for a premature breakout from the wedge - to pick a specific entry buy, i would suggest using a shorter time scale like the 4 hour chart.
*Not financial advice and should not be interpreted as such :)*
Nonetheless, i consider the 6500-7000 the lowest threshold. i would watch the $8000 level as a bear flag could ensue. Here's a tip, combine your analyses with the global charts on CMC and formulate your own opinion :)
Happy trading :)