Hello, dear followers, this is our first technical analysis for bitcoin. We are going to share our knowledge and thoughts to help you in your capital management. In the first chart, bitcoin is close to a very important level of Fibonacci 0.786, which means that the price has made a healthy correction toward a bullish momentum.
As we can see, price found support at 6890 and we think we are in an impulse wave for the short term. Actually, we are completing the 4 wave to see a way through the 5 wave.
Looking at bitcoin +0,16% now, it is holding the support level but there is some indication that bears are pushing in the market so we are going to determine where it is likely to bounce from next if the current horizontal support zone fails. At present in the four-hour chart, the price is trading in the support zone of 6960 and 6760. If price does break current support and goes toward the the lower one, we will be able to see a drop to 6.200, which is the nearest support zone that matches the 2 elliot wave.
If the bulls come out on top by rejecting the lows, this would be a great thing and a very bullish set up. If price consolidates at lower support, then this shows uncertainty ahead of a bounce. This would be bad news for bitcoin's trend in the short to mid term.
As we can see in the chart, we should use the level of 6965 that is holding as support in a important level of Fibonacci of 0,618. We could set our Stop Loss for a Long Entry. Targets are above 7200 and maybe 7460.
Indicators are also are showing us that we may see a bounce. The MACD are near to converge and Stochastics shows us a price that is in an over-sold area so for the next week, we expect to get price of 9450 to conclude our 5 impulse wave.
From Fundamentals, price will probably become nervous and take on a speculative character until decisions are made.
Altcoins near good supports, but yet no trend reversal, so be careful before trading them.
Be sure you follow capital management and be prepared for anything to happen.
Where do you think price is heading? Leave a comment below and let's share our thoughts!
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