Bitcoin : Defending the significant level of support.
Hello all, welcome back again to the bitcoin analysis. Today is a very beautiful day for the bulls of bitcoin. The price has bounced from the significant level which I've anticipated previously. Now, for the next potential moves, let's focus for this current technical analysis about bitcoin.
The price has already bounced from the white resistance trend line which has became the support trend line for bitcoin since the December 2019 where bitcoin's bottom for current cycle. This support trend line is however become my 2nd anticipated region for support which I've mentioned in my previous analysis. There will be 2 possible scenario for the short term, which I represent it as a white and red arrow on the chart.
1. Breaking out of current minor resistance.
Currently the price is still trending below the current minor resistance. This is however becomes a crucial zone for the intraday based trading. If the price can break this level of resistance, there will be a possible push toward the yellow resistance trend line which is having a confluence with the previous broken support that is now become resistance as the behavior of the 2nd phase of break out strategy. ($9300 - $9500)
2. Can't sustain above the minor resistance and breaks down of the support.
This is more bearish way for bitcoin. Although we have seen a significant spike and potential bullish engulfing candle at the daily chart, there is still a possibility that the daily candle could forms a wick to the upside because it still has several hours until daily candle closure. If this action occurs at the price, we'll see a diminishing power from the bulls and the bears are gaining strength again to drive the price to breaks white resistance trend line. And if this occur, I'll targeting the next support ($8000 region)
For now, it's still very interesting for the scalper and day trader to enter any position because the market has brought back the volatility. For the swinger, it's totally a waiting game until we get other confirmation of the direction of the market.
The price has already bounced from the white resistance trend line which has became the support trend line for bitcoin since the December 2019 where bitcoin's bottom for current cycle. This support trend line is however become my 2nd anticipated region for support which I've mentioned in my previous analysis. There will be 2 possible scenario for the short term, which I represent it as a white and red arrow on the chart.
1. Breaking out of current minor resistance.
Currently the price is still trending below the current minor resistance. This is however becomes a crucial zone for the intraday based trading. If the price can break this level of resistance, there will be a possible push toward the yellow resistance trend line which is having a confluence with the previous broken support that is now become resistance as the behavior of the 2nd phase of break out strategy. ($9300 - $9500)
2. Can't sustain above the minor resistance and breaks down of the support.
This is more bearish way for bitcoin. Although we have seen a significant spike and potential bullish engulfing candle at the daily chart, there is still a possibility that the daily candle could forms a wick to the upside because it still has several hours until daily candle closure. If this action occurs at the price, we'll see a diminishing power from the bulls and the bears are gaining strength again to drive the price to breaks white resistance trend line. And if this occur, I'll targeting the next support ($8000 region)
For now, it's still very interesting for the scalper and day trader to enter any position because the market has brought back the volatility. For the swinger, it's totally a waiting game until we get other confirmation of the direction of the market.
