Bitcoin has been held back by the same arc of resistance now for the past 4 days. Readers of my last column will recall that 2 days ago I posted a chart which demonstrated that the 2 arc of the 5th pair was resisting. Though I have hypothesized that an eventual close above the arc is likely in the cards, that arc has not been defeated by the bulls yet.
Here is a close-up of this 8-hour chart, so you can more easily see how the 2nd arc has been the key resistance for 4 days now:
So, will we see higher highs in the days to come? I continue to believe so, but we still don’t have a buy signal on the 8-hour chart. A re-test of the 920 low might well be in the cards. At this point, a 920 test will probably hit the 1×1 Gann angle (blue line), which would likely energize pricetime to begin it’s advance anew.
Here is a daily chart with a long-term Andrews’ pitchfork:
The “1 line” has been broken to the upside, but is being tested as these words are written. See a close-up of the “1 line” below:
According to pitchfork theory, a serious advance is predicted, all the way to the zero line (not shown). However, before we mortgage the house to leverage ourselves long, we need to be reminded of this shorter-term setup on the daily chart:
While I continue to believe 2017 will be an even better year for Bitcoin than 2016 was, there could well be a significant trading opportunity (on the short side) in a week or two, in the $1025 area…
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Image from Shutterstock.
Last modified: January 1, 2017 17:32 UTC