Today we saw bitcoin had a nice bounce off some strong resistance areas: Daily MA55, Daily MA100, and lower support line of the rising wedge/channel. That impulse caused many traders to close their short positions and possibly convert into bulls. It could be a very profound trick by market-makers to get rid of extra passengers on the way down and at the same time to create additional liquidity from stop-losses of the new long positions.
Ideally, Bitcoin has to test 7500 level, which is also a very important 61.8 Fibonacci level from the last downtrend, and that is what most of the traders expect but Bitcoin is always full of surprises. Right now the weakness of the bulls barely allows it to stay over 7000. In the next day or two we should see some strong impulse.
The major resistance level is Daily EMA100 at 7130.
Ideally, Bitcoin has to test 7500 level, which is also a very important 61.8 Fibonacci level from the last downtrend, and that is what most of the traders expect but Bitcoin is always full of surprises. Right now the weakness of the bulls barely allows it to stay over 7000. In the next day or two we should see some strong impulse.
The major resistance level is Daily EMA100 at 7130.