Bitcoin Technical Analysis: Testing Key Resistance

Looking at the daily chart, Bitcoin has been unable to decisively break above a small supply zone between $6,280-$6,540. Today, we have a bullish engulfing candle that briefly broke above by just a wick. It’s remaining deep within this zone and threatening to break a key resistance at $6,540. If we can close above this resistance on the daily, I believe the bulls will have taken back momentum...at least in the short term. The next major resistance would be $6,750.

The 4 hour RSI continues to operate within a bearish rising wedge. This suggests we MIGHT see a break down in price, but I believe it could be temporary.

Looking at the 4 hour chart, we can see price appears to be operating within a possible bullish pennant. If accurate, we could see a drop to test the bottom of the pennant and the $6,280 support. From there, we may see a strong bounce that could provide the momentum needed to break the key $6,540 resistance. If this happens, I believe price will reach at least $6,700 shortly after.

In today’s video analysis, I discuss various scenarios to keep an eye out for, price movement in the short term, my Elliot wave count, traps to avoid and MUCH more. If you’re not watching my videos, you’re only getting a small part of the story.

Video Analysis:

If you’re viewing this on a site other than Steemit, and you don’t see the above video, navigate to Steemit or TIMM (https://mentormarket.io/profile/@workin2005?aff_id=Workin2005) in order to watch.

BIAS:

Short Term: Slightly Bullish
Longterm: Very Bullish

I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!

Workin

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