-
Bitcoin (BTC/USD) is moving up again. Price action was able to find strong support at the 21 ema zone weekly chart. The probability of a bullish wave 3 is now seriously increasing.
-
BTC/USD is testing the resistance Fractal. This is the critical and key level for the bulls. A bullish breakout above the resistance Fractal should spark a strong bullish rally.
-
The best course of action is to wait for a pullback. A bull flag chart pattern would be a welcomed pattern. But also a bullish bounce at the 21 ema zone.
This article reviews the key confirmation level for the bulls. We also look at the second most likely path of least resistance.
Price Charts and Technical Analysis
The BTC/USD is testing the resistance Fractal (purple line). This is the critical and key level for the bulls. A bullish breakout above the resistance Fractal should spark a strong bullish rally (green arrows).
Price action has already managed to break above other key resistance levels (dotted purple lines). So this Fractal and 88.6% Fibonacci retracement are the least resistance before the bulls could push for a third wave (green).
Only a break below the 21 ema (orange arrows) could indicate a deeper retracement. In that case, we might see the triangle pattern as we estimated in our previous analysis (wave E pink). But the support zone (blue box) should stop price action from falling too far.
On the daily chart (see below), price action respected the support zone (blue box) and the 38.2% Fibonacci level (purple box). Price has also broken above the resistance trend line (dotted purple).
The breakout above the Fractal (green box) is an extra confirmation that the bulls are in control… BUT price action is now too close to the previous top for any decisive action, in my view.
The best course of action is probably to wait for a pullback (orange arrows). A bull flag chart pattern would be a welcomed pattern. But also a bullish bounce at the support trend line and 21 ema zone too. Price action is developing a wave 3 pattern as long as price action stays above the blue box and avoids the red X.
The analysis has been done with the ecs.SWAT method and ebook.
Elite CurrenSea Training Program(s) should not be treated as a recommendation or a suggestion to buy or sell any security or the suitability of any investment strategy for Student. The purchase, sale, or advice regarding any security, other financial instrument or system can only be performed by a licensed Industry representative; such as, but not limited to a Broker/Dealer, Introducing Broker, FCM and/or Registered Investment Advisor. Neither Elite CurrenSea nor its representatives are licensed to make such advisements. Electronic active trading (trading) may put your capital at risk, hence all trading decisions are made at your own risk. Furthermore, trading may also involve a high volume & frequency of trading activity. Each trade generates a commission and the total daily commission on such a high volume of trading can be considerable. Trading accounts should be considered speculative in nature with the objective being to generate short-term profits. This activity may result in the loss of more than 100% of an investment, which is the sole responsibility of the client. Any trader should realise the operation of a margin account under various market conditions and review his or her investment objectives, financial resources and risk tolerances to determine whether margin trading is appropriate for them. The increased leverage which margin provides may heighten risk substantially, including the risk of loss in excess of 100% of an investment.
Recommended Content
Editors’ Picks
Base attracts Lion’s share of Ethereum deposits among Layer 2 chains, beats Optimism in TVL
Base, Coinbase’s Ethereum Layer 2 chain, has noted a spike in inflows to its blockchain this week. Nearly $20 million in Ether flowed into Base since Monday, nearly two times that of Arbitrum and five times as much as Optimism, its competitors in the scaling ecosystem.
SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51
Ripple lawsuit develops further as redacted version of SEC filing goes public. Ripple, SEC and related parties will file motions to seal material from the remedies-related filings by May 13.
FET suffers 2% decline as whales deposit Fetch.AI tokens to exchanges
Fetch.AI (FET) token will be the reserve currency of the Superintelligence Alliance (ASI), a merge of three Artificial Intelligence (AI) projects: Fetch.AI, Ocean protocol and SingularityNET.
Ethereum resume sideways move as Grayscale files to withdraw Ethereum futures ETF application with the SEC
Grayscale has withdrawn its 19b-4 application for an Ethereum futures ETF. SEC Chair Gensler says several crypto assets are securities as he waives off ETH classification question.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.