Above is my current working chart. It shows a new Fibonacci retracement of the previous downtrend, the MACD indicator and fractal ^ symbols – these are historically significant high and low turning points. An explanation of Fib levels and the MACD can be found in Part 1 of my previous forecast. Also shown is my stoploss level, a major Support / Resistance line at $800 and the All Time High.
My current trading plan, as well as previous plans, can be seen on my Trading View profile. I’d like to recommend Trading View again, they give you all the charts and tools necessary for Bitcoin trade analysis for free. Charts of the major Bitcoin and Litecoin markets, in a variety of currencies, are available. Finally, many skilled traders share their views and charts there; different perspectives are often helpful in keeping your objectivity.
I bought in with 1/3 of my trading capital yesterday evening, as price broke above the previous fractal high on strong volume and the MACD gave a bullish signal.
This morning, price pulled back to test the breakout line. Such tests commonly occur after important chart and level breaks. What’s somewhat concerning is that price has now passed below the breakout level.
We still have an intact uptrend however. So long as price remains above this uptrend line, I remain bullish. There is talk right now of various buying and selling walls going up. Given the low volume, these games may be keeping the bulls at bay for now.
Another thing to note on my Bitcoin trade chart is the accuracy of the Fibonacci Retracement levels. Price is currently struggling to pass the 61.8% retracement level, and the lower levels have served as excellent Support / Resistance or pivots.
Despite the current resistance, I’m holding tight and remain bullish. If the Bitcoin price passes that green Fib line, I believe the next test at $800 will come quickly.
This is a part of the Cryptocurrency Investment Club by CryptoCoinsNews.com.
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