Hello,
Since the resolve of the Bitcoin Hard fork on August 1st, Bitcoin have been inside an ascending channel (two purple lines) and BTC seems to be unstoppable with a growth of 1400$ in just two weeks.
Today and yesterday, BTC/USD hits 4200 which seems to act as a good resistance. Indeed as you can see on the chart, 4200$ is a 1.618 FIB resistance.
With this resistance and the ascending channel, BTC is also inside an ascending triangle (between the orange and the bottom channel purple lines) which should resolve before the 19th of August.
Two scenarios could happen:
- The triangle breaks upward, BTC will keep on rising in order to hit the 2.618 shorter time FIB resistance around 4500. If this resistance is broken then BTC will go to the red line which is a longterm uptrend resistance. If the great king BTC breaks this red line we will retest the top of the ascending purple channel before hitting the 3.618 resistance at 5500$. Of course there should be local dips before going up like this.
- BTC restests the bottom of the channel (lower purple line) and the triangle breaks downward, BTC could revisit 3400-3500.
But before one of this scenario could happen, BTC could bounce several time inside this triangle.
Personally, based on the BTC custom parameters for my indicators, I am more inclined for a retest of the bottom of the channel and maybe a broke down of the triangle in order for BTC to gather some new strength before going to new Highs! But with BTC anything could happen!