Bitcoin : the precision of trend line and fibonacci levels
Hello all, here we go again. before we start, I just want to inform you that I'm still in holding the rest of my long position that I've already opened since the $9660 region which has produced a huge amount of gain. And to secure the profit, I've moved the SL into profit so we can still ride the trend. Now, let's get back to the chart work of bitcoin!
If you remember my previous chart about bitcoin, you might see that there is a green resistance trend line which has held the price with a precision, and withing today's candle, we have see that the price has already broken out of this resistance trend line and we have seen the 2nd phase of break out strategy which it has retested the green resistance as a support. After this retesting action, we have a huge green candle which keep the momentum of going to the upside. But, after the price touched the 78.6 fib retracement, there is a huge pressure from the bear and made the 4 hours candle looks ugly with a nasty rejection.
From this point, I will highlight 2 things :
1. The .786 fib level, This level however was becoming a very strong key level for most of crypto assets back at the 2018 and 2019. Just for your information, A lot of price whether it's in downtrend and the uptrend, they mostly have the end of the correction at the .786 fib level. And will this become the same with this current candle? Therefore, I will diligently look at the price when it touches again this level. A break above this, we will see the price to challenfe interim swing high even more to the $11000 ish
2. The light blue region, This region will acts as a significant support zone for bitcoin. Looking at the past performance, we have seen a lot of the wick and price action at this region which make this level as a good support. Beside, this level consists of the psychological number of $10000 region. Potentially, we might see several actions of testing this support are. watch it.
I have a huge expectation of #11000 region to be touched if we looks at current bulls momentum. But, to open long position at this level? I don't recommend it!
If you remember my previous chart about bitcoin, you might see that there is a green resistance trend line which has held the price with a precision, and withing today's candle, we have see that the price has already broken out of this resistance trend line and we have seen the 2nd phase of break out strategy which it has retested the green resistance as a support. After this retesting action, we have a huge green candle which keep the momentum of going to the upside. But, after the price touched the 78.6 fib retracement, there is a huge pressure from the bear and made the 4 hours candle looks ugly with a nasty rejection.
From this point, I will highlight 2 things :
1. The .786 fib level, This level however was becoming a very strong key level for most of crypto assets back at the 2018 and 2019. Just for your information, A lot of price whether it's in downtrend and the uptrend, they mostly have the end of the correction at the .786 fib level. And will this become the same with this current candle? Therefore, I will diligently look at the price when it touches again this level. A break above this, we will see the price to challenfe interim swing high even more to the $11000 ish
2. The light blue region, This region will acts as a significant support zone for bitcoin. Looking at the past performance, we have seen a lot of the wick and price action at this region which make this level as a good support. Beside, this level consists of the psychological number of $10000 region. Potentially, we might see several actions of testing this support are. watch it.
I have a huge expectation of #11000 region to be touched if we looks at current bulls momentum. But, to open long position at this level? I don't recommend it!
