BTC: How Far Can Bitcoin Rally? Support Turned Resistance Theory
Bitcoin has been showing some clear strength over the past few days. Many are clearly forgetting that we are trading below a major resistance level on the daily chart.
Here we can see that although we did break above the larger 618 fib from our swing high to swing low, we are now approaching major resistance at the newly created immediate trend line support. It is possible to retest our rising wedge two times, and becomes invalidated when broken back above.
As with all bearish rising wedges, we need to also understand that there is always a possibility of a retest of the rising wedge, giving more support and evidence to a continuation for a downfall. With two CME gaps not filled, what are the chances of Bitcoin breaking above and continuing its rally? That is up to you!
The Crypto Fear and Green index is now saying we are in "GREED" - this can indicate that the market may be ready to long the market as a general retail investor. But as with more greed, and even the possibility of extreme greed, we always know how that has ended up.
Trade Safe!
X Force
Here we can see that although we did break above the larger 618 fib from our swing high to swing low, we are now approaching major resistance at the newly created immediate trend line support. It is possible to retest our rising wedge two times, and becomes invalidated when broken back above.
As with all bearish rising wedges, we need to also understand that there is always a possibility of a retest of the rising wedge, giving more support and evidence to a continuation for a downfall. With two CME gaps not filled, what are the chances of Bitcoin breaking above and continuing its rally? That is up to you!
The Crypto Fear and Green index is now saying we are in "GREED" - this can indicate that the market may be ready to long the market as a general retail investor. But as with more greed, and even the possibility of extreme greed, we always know how that has ended up.
Trade Safe!
X Force
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