Bitcoin's Big Resistance Test

Published 01/08/2018, 01:57 PM
Updated 07/09/2023, 06:31 AM

Below looks at bitcoin's weekly chart back to 2013. Bitcoin has spent the majority of the past 4 years inside of rising channel (1), where the top of it was hit at (3) in mid-December, three weeks ago. At this time, the trend remains up.

Weekly Bitcoin

The Power of the Pattern applied Fibonacci to the lows and highs at each (2). The steep rally in bitcoin off the highs at (2) saw it hit the top of the rising channel and its Fibonacci 423% extension level at (3), where a large bearish reversal pattern took place.

Until it breaks out, this could be an important resistance test for bitcoin (3).

Bitcoin bulls might want to watch rising support at (4), as this is a key test of the sharp rally of late. If this support breaks, it would increase the odds that the resistance zone is important to the bulls.

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