Good morning, traders. I hope you are being vigilant and monitoring market conditions. The lull most often results in retail traders losing money as they get bored and lazy because price isn't moving much. Daily volume
yesterday was the most we've seen on Bitstamp
in over a month and resulted in a nice, large daily candle. Price has halted appreciation at an area of confluence of resistance. We can see the shorter term descending resistance and ATH
descending resistance coming together, as well as the ascending channel EQ
. Additionally, the vertical red line marks the Bitmex March futures
contracts expiry. Daily RSI
hit resistance yesterday while Stoch RSI
crossed bullishly. Price still hasn't retraced, rather it appears to be consolidating near yesterday's high while printing a bull flag
on the 4H TF at the top of the local TR
suggesting demand is continuing to build. Price remains above the 4H and daily pivots
, as well as their respective HVNs. The target based on the height of the 4H bull flag
would be the same target we have continued to watch which is the top of the ascending red channel. The 4H RSI
broke through resistance yesterday and is currently testing it as support. A bounce from there should signal price breaking through it's own flag resistance and targeting $4120-$4155, depending on when it does so.
Ideally, I would at least like to see that break and a close above the February swing high of $4190. This would give us monthly higher highs from January through March. It would also strengthen the case for bullishness. If we can see price head up from here, then I am initially looking for a target of the red channel resistance followed by a retest of the ATH
descending resistance line as support/bounce off the red channel support, and then follow through toward $4538 at a minimum. This latter target is based off the height of the larger descending channel
on the daily chart
. While there are only three alternating touches (really need four to confirm the channel), it does give us a preliminary target. What we ultimately need to see is a close above the December 24th swing high of $4236.84. This would confirm a bullish trend
as we would have a higher high off the corrective, December low.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.