Even with high volatility and surges in trading volume, Bitcoin's managed to maintain its rally and increase overall dominance in recent weeks. And after BTC almost exactly reached our previous targets of resistance, the technical indicators seem to point to a re-testing of that high.
Short Term: Fib Resistance
After a rapid rise to the golden ratio at $14,000 and facing a harsh rejection, BTC's been trending up and nearing that previous resistance level once again.
However both the weekly RSI and MACD are in extreme high regions, which indicates a potential sell-off in the coming weeks. But with no significant resistances apart from the $14,000 level, the gates are theoretically open for another 10+% rally from current prices.
Long Term: Fib Support
Regardless of the likelihood of a short term rise, most analysists expect that a correction wave will inevitably follow. In the case of a bearish rejection at the next level, Bitcoin could still hold above $9,500 when the 0.382 fib level acts as strong support.
Bearish Scenario: $11,500 target
When looking at the 8-hour chart, a bullish inverse head and shoulders pattern was formed and successfully reached its target.
The target was quickly followed by a bearish engulfing candlestick pattern, an argument for Bitcoin dropping to find support at around $11,500, or the 0.5 fib level.
While Bitcoin’s overall trend remains bullish and positioned well for a price hike in the short term, the near term is less certain and a hard rejection at the target resistance level could lead to a substantial correction.
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Disclaimer: contents of this article are for general market education and commentary and are not intended to serve as financial, investment, or any other type of advice