BTC Update: 2-1-18

Price: ~$10,000

1M:

In yesterday’s update I had alluded to the importance of today’s monthly close. Bitcoin managed to close above December’s open as well stayed above the monthly Tenkan & Kijun. For now on the monthly view, $10K is support, this does not mean a wick cannot be formed underneath it, more on that later. However, until a monthly candle close beneath TKs, $10K remains cloud & psychological support.

24HR:

On the daily view, price remains below the 125 EMA & 1.618 fib resistances. The Tenkan & Kijun have flattened for the time being, however the latest dip will likely have them continue to diverge in the not too distant future. Finally, the 125 EMA may be beginning to feel the effects of the latest price funk, as its subtly starting to turn down. Not cause for alarm, but something to monitor.

6HR:

Lastly, one thing that caught my eye on the 6HR candles is an RSI trend & wedge developing. RSI (Relative Strength Index) is a momentum oscillator, below 50 is bearish momentum, above 50 is bullish momentum, & 50 is strong support/resistance. Despite price action doing lots of sideways with bearish bias, there is a momentum trend attempting to form. Currently RSI is wedged below 50 and price below 1.618 fib resistance; would need a strong push upwards to break out of both, and breaking the trend would mean bearish continuation.

Prognosis:

For now BTC remains hovering around the psychological support zone of $10,000. The mini RSI trend is something to keep an eye on. If BTC manages to starve off downward price action, it would not be surprising for price to make a run at the 125 EMA & 1.618 fib at some point. If price does make an attempt upward this will be a consolidation zone until price can break through with strong volume & a retest of support. Otherwise price runs risk of strong rejection and the local bottoms, 200 EMA, and 1 Fib are next in line for support.

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