Bitcoin (BTC)
Market Cap. $143.84B
Circulating Supply 16.99M BTC
Max Supply: 21M BTC
Volume (24H) $7.40B
Bitcoin massive corrective phase has forced the other cryptocurrencies to drop as well. Technically, a corrective phase was expected, but not so deep. Unfortunately, the fundamental factors have taken the lead and have driven the rate towards the 6000 psychological level.
Bitcoin has shown an oversold when it ihas finally managed to make a valid breakout above the first warning line (WL1) of the descending pitchfork. Price tested and retested the sliding parallel line (sl) of the ascending Pitchfork signaling a bullish pressure.
The rate increased and is trading above the $8500 and much above the lower median line (lml) of the ascending pitchfork. It has managed to breakout above the WL2 today, but the breakout needs confirmation.
I draw two potential long trading setups on the Daily chart for those who didn’t enter long in the previous week. Price could increase further in the upcoming days without a retest of the broken WL2 but is too risky.
Personally, I would wait for a retest of the WL2 and the lower median line (lml) before I go long again on the Bitcoin. It would be perfect if the rate will come down towards the outside sliding line (sl) because we’ll have a great buying opportunity with a very low risk.
Bitcoin will resume the upside movement if it has enough energy to climb and close above the $8600 level. It could be pulled by the confluence area, formed between the 50% Fibonacci line and the 350% Fibonacci line. A valid breakout through this confluence area will accelerate the bullish momentum.
In conclusion, a decrease will give us a great opportunity to go long on the Bitcoin again if you don’t want to take a long position with a high risk and to place a Stop Loss below the $6425 low.
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