It has been several days since we looked at Bitcoin. I expected it would be range-bound for several days, and so it has. But it seems that the Bitcoin arena might get exciting again soon. Both the long-term and the shorter-term setup I have been watching on the daily chart are both approaching their respective resistance arcs. And we are now very close to an energy point in time, so let’s take a look, first at the short-term daily chart:
I have highlighted with blue arrows points at which the setup was able to forecast trading opportunities. Of course, it bears repeating that technical analysis is like counting cards. To the best of my knowledge, one never knows to a certainty what will happen next. However, we can identify those places in time where something is highly likely to happen and bet accordingly. We are approaching such a period.
As you can see, the 4th arc pair has captured price for several days now. But the 2nd arc of the pair has so far not been able to throw price to the ground, because the first of the pair is providing support. We are almost at a point in time (blue vertical line) 90 degrees from the strong rally early in September. That is a likely place for either a reversal or an acceleration. I would bet on an acceleration, except I won’t actually bet on it. I’ll wait for the acceleration to actually begin. A close above the arc pair will be my buy signal.
Let’s see the long-term setup next:
As you can see, the picture is the same, only in this case, it’s the 3rd arc pair that has contained price. But that 2nd arc of the pair has been getting tested every day for several days now. My guess is that the arc will give up resisting soon. But don’t jump the gun. My advice? Wait for it….
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.