BTC has had a dramatic series of trading events this past week, with a tremendous fall from 20k psychological to nearly 10.4k former breakout, BTC has fully retraced its December gains. While BTC is looking like its found its footing here I have mapped out some areas of interest..
The arrows point out on this chart a possible head and shoulders. If this is confirmed to the downside BTC would have a measured move to about 8k area. While BTC is known for breaking traditional charting rules, I would be very wary of entering any long positions here as the current rally is not exactly convincing to me. With a lack of volume during the holiday season, I see some concern that this rally will get sold into once the new week begins and traders are in full force. Confirmation to the downside on this head and shoulders would be a 4 hour close below the spike low of the 12-23 on whatever exchange you trade on with ideally heavy volume.
Even if it takes out my current resistance trendline it can go all the way to 18k before being stonewalled thus completing a head and shoulders.
As always the other scenario would be a period of healthy consolidation at the current levels and then a 4 hour close above the 18k area to have a general level of confidence to the upside. More reckless traders can definitely trade the current range its in BUT if BTC fails at any point it will come at lightening speed so bulls must be careful here.
IF BTC can get a 4 hour close above the 18k area on good volume I would become incredibly bullish and look to lower 20ks for the next realistic stop.
Not financial advice.
The arrows point out on this chart a possible head and shoulders. If this is confirmed to the downside BTC would have a measured move to about 8k area. While BTC is known for breaking traditional charting rules, I would be very wary of entering any long positions here as the current rally is not exactly convincing to me. With a lack of volume during the holiday season, I see some concern that this rally will get sold into once the new week begins and traders are in full force. Confirmation to the downside on this head and shoulders would be a 4 hour close below the spike low of the 12-23 on whatever exchange you trade on with ideally heavy volume.
Even if it takes out my current resistance trendline it can go all the way to 18k before being stonewalled thus completing a head and shoulders.
As always the other scenario would be a period of healthy consolidation at the current levels and then a 4 hour close above the 18k area to have a general level of confidence to the upside. More reckless traders can definitely trade the current range its in BUT if BTC fails at any point it will come at lightening speed so bulls must be careful here.
IF BTC can get a 4 hour close above the 18k area on good volume I would become incredibly bullish and look to lower 20ks for the next realistic stop.
Not financial advice.