Happy Friday all! Let's do the technical analysis about bitcoin. Through this analysis, I want to show you the details of how I identify the bias and apply it on the current price movement. I will try to present the confluence reasons to identify current bias from this daily perspective.
First thing is always the most crucial and significant thing that may affect the chart as well. That's why I come for the most crucial of white resistance trend line since the ATH on December 2017. We can't deny that this resistance trend line is the strongest resistance ahead that bitcoin must breaks. In align with this resistance trend line, the price is facing the resistance of psychological resistance around $10000 region. This is however the 5 digits of number and will always be a serious resistance as well. So, in more simplified word, fail to breaks current resistance will bring the price to lower level. But, breaks out of this region will leads the price to higher region or even the ATH again.
Second thing is the Elliot wave count that potentially can be the point of determination whether the price will breaks out or comes back down. My initial wave count is that this potentially could be the 1-2-3-4-5 EW with impulsive to the upside. But, I can't deny that there is still a chance of current structure that will forms an ABC structure as well. So, we must wait a little bit longer for this structure to give confirmation.
Third thing is the ascending type of triangle that could be the sign of the price reaching out the 4th wave as a flat wave and potentially this will become an accumulation zone. However, this is a good accumulation because the price has formed a higher low and a flat resistance pattern. Beside, the support trend line which is the lower line of the ascending triangle is having an alignment with the EMA 55 as a strong dynamic support. Could this be a continuation pattern to the upside?
Last thing is the hidden bullish divergence you see as the continuation pattern. On the price action, you can see a higher low structure, on the other hand the RSI printed a lower low. A good sign for the price to continue the movement to the upside.
So, considering all of the factors above I will assume that bulls are having more momentum than the bears in the daily cycle of time frame. But, This bullish bias may be invalidated if the price can breaks below the green region or around $8000 region
First thing is always the most crucial and significant thing that may affect the chart as well. That's why I come for the most crucial of white resistance trend line since the ATH on December 2017. We can't deny that this resistance trend line is the strongest resistance ahead that bitcoin must breaks. In align with this resistance trend line, the price is facing the resistance of psychological resistance around $10000 region. This is however the 5 digits of number and will always be a serious resistance as well. So, in more simplified word, fail to breaks current resistance will bring the price to lower level. But, breaks out of this region will leads the price to higher region or even the ATH again.
Second thing is the Elliot wave count that potentially can be the point of determination whether the price will breaks out or comes back down. My initial wave count is that this potentially could be the 1-2-3-4-5 EW with impulsive to the upside. But, I can't deny that there is still a chance of current structure that will forms an ABC structure as well. So, we must wait a little bit longer for this structure to give confirmation.
Third thing is the ascending type of triangle that could be the sign of the price reaching out the 4th wave as a flat wave and potentially this will become an accumulation zone. However, this is a good accumulation because the price has formed a higher low and a flat resistance pattern. Beside, the support trend line which is the lower line of the ascending triangle is having an alignment with the EMA 55 as a strong dynamic support. Could this be a continuation pattern to the upside?
Last thing is the hidden bullish divergence you see as the continuation pattern. On the price action, you can see a higher low structure, on the other hand the RSI printed a lower low. A good sign for the price to continue the movement to the upside.
So, considering all of the factors above I will assume that bulls are having more momentum than the bears in the daily cycle of time frame. But, This bullish bias may be invalidated if the price can breaks below the green region or around $8000 region
