Bitcoin Tore through Resistance

Journalist:
December 22, 2016

Well, Bitcoin tore through resistance easily this morning. Readers will remember that the weekly chart we looked at a couple days ago was sitting at the 2nd arc of the 2nd pair, and the end of the 1st square.  As end-of-squares is often a time of reversals or accelerations, I was concerned a reversal might be lurking.  But the arc was disposed of easily, indicating that the long term trend remains up until at least the next arc at $1000+.  See below:

The daily chart was sitting just below 5th arc resistance yesterday.  Price has penetrated through to the sunny side of the arc pair as of this writing, and is staring at the 1×1 Gann angle.  Of course, until we get a close above the arc in 16 hours or so, we can’t know for sure, but it looks like we might get a close above the 5th arc on the daily chart. If so, this suggests the next serious resistance is at the top of the 4th and 5th squares.  See below:

Finally, the 8-hour chart has also seen 5th arc penetration.  Resistance is much higher at $907 and $1017 (top of 4th and 5th squares).  See below:

All-in-all, it looks like a good time to be long this coin.  While my nature is to look for pitfalls and places to be careful, it seems that this rally still has legs left.  Barring any unexpected surprises it looks like there is a decent probability that we will see a rally to at least a few dollars higher than $1000 in the not-terribly distant future. This is a fun time to be a trader.

Happy trading!

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.

Last modified (UTC): December 22, 2016 17:46

Jim Fredrickson @jimfred1276

Jim has an MBA from the University of Southern California. He has been trading commodities, forex and bitcoin since 1993. You may email him directly at: jimfred1276 at gmail dot com. Feel free to follow him on twitter.