Price failed to create upward momentum on the back of a Bullish
MACD crossing and has fallen back towards the low from Jan 17
at 9222. Today has this far seen indecision which is shown as a
doji candle (not closed). If we draw the fib levels from the beginning
of the ascending trendline Sep 15 we see that price is trading just
above the 61,8 fib support at 9410, a level which has already been
tested and held support. This fib level along with the trendline and
Monthly S1/Weekly S2 creates a solid support zone 8950-9400.
Despite all the doom and gloom, even from established technical
analysts, if we put all that aside, and look at price action from a
monthly perspective, we see how Bitcoin started the month well
above the R1 pivot and hasn't yet tested the S1. So there is nothing
unnatural, from a bullish perspective about were price stands now.
S1 should hold support in an uptrend, and so it has and likely will,
if we don't see a dump during the last hours of the month.
From a weekly perspective, the situation is more bearish however,
as price has cut below the Weekly S1. Bulls would like to see price
get back above this level, 10400, on a close, to relieve some
downside pressure. The 11800 resistance is above that. Perhaps
it would clarify things if we saw a wash and rinse of the 9000 level
and chances are we will too. Bulls do not want to see a large red
candle cutting through this level and close below 9000. That will
shift focus to the next support level around 7500. The new Monthly
pivots will also have to be considered when they arrive. The
MACD knot also warns of more downside which is important to note.
MACD crossing and has fallen back towards the low from Jan 17
at 9222. Today has this far seen indecision which is shown as a
doji candle (not closed). If we draw the fib levels from the beginning
of the ascending trendline Sep 15 we see that price is trading just
above the 61,8 fib support at 9410, a level which has already been
tested and held support. This fib level along with the trendline and
Monthly S1/Weekly S2 creates a solid support zone 8950-9400.
Despite all the doom and gloom, even from established technical
analysts, if we put all that aside, and look at price action from a
monthly perspective, we see how Bitcoin started the month well
above the R1 pivot and hasn't yet tested the S1. So there is nothing
unnatural, from a bullish perspective about were price stands now.
S1 should hold support in an uptrend, and so it has and likely will,
if we don't see a dump during the last hours of the month.
From a weekly perspective, the situation is more bearish however,
as price has cut below the Weekly S1. Bulls would like to see price
get back above this level, 10400, on a close, to relieve some
downside pressure. The 11800 resistance is above that. Perhaps
it would clarify things if we saw a wash and rinse of the 9000 level
and chances are we will too. Bulls do not want to see a large red
candle cutting through this level and close below 9000. That will
shift focus to the next support level around 7500. The new Monthly
pivots will also have to be considered when they arrive. The
MACD knot also warns of more downside which is important to note.
