Minor Bitcoin pullback before upward movement!

4 set 2018

BTCUSD

Past Trend

Bitcoin has rallied up past the $7100 range and has been holding strong above support (which was previous bullish resistance). We are starting to see price action heading back up toward the previous high of $8400, formed on the 24th of July 2018. We can expect price to be trading in a range for anywhere between 1-2 days in the short term before a push up to the $7500 range. However, if price fails and falls below the $7140 mark we should expect a longer time frame for price to reach the $7500 range.

Fibonacci Levels

The bullish Fibonacci levels we should be looking out for are:

Target 1 - $7415.20
Target 2 - $7576.40
Target 3 - $7708.20

The bearish levels to look out for are:

Target 1 - $7140.30
Target 2 - $6954.40

RSI

RSI is currently sitting at the 64 mark, right under the overbought level. Price could either push up straight away and puncture the 70 overbought RSI level, or have a minor retracement and test the support level of $7140 (which i anticipate). Seeing that we have an ascending trendline with the RSI, if price falls we can expect it to be trading at the ~50 range once the retracement is complete.

Ascending Trendline

We have an ascending trendline stemming from the 13th of August 2018. Right now price has a moderate distance from the ascending trenline, giving us a bit of space for a bullish retracement. Even if price were to puncture the $7160 mark, we can still expect bullish movements in price action for the short-term. The lowest point in which price will fall to in the case of a retracement below $7140, is - for price to fall to the maximum of $6950, within the ascending trendline.

Momentum

Bullish momentum seems to be healthy, with the trix indicator staying above the baseline - suggesting it is still in a uptrend. The indicator also suggests that we should be gearing up for another bull run in the relative short-term.

Elliott Waves

We have just completed the 5 wave sequence starting from the low of 13th August 2018, and can expect some sideways movement before another series of fractals up toward the $8400 high of 24th July 2018.

Things to keep in mind

Price will be trading in a range for the short-term
Market seems optimistically bullish for the moment
If price falls below $7160 expect it to reach $6954.40
If price falls below $7160 expect price to take longer for a rebound

Overview

We can expect the market to move up anywhere between the range of $7415-$7708 depending on sentiment and volume. I would take a conservative stance of $7576.40 at the highest for the next bull run. If price falls below the support of $7160 we can expect a retracement to within the ascending trendline at the price point of $6950, before the movement back up.