price got a very nice PUMP upwards and the Daily range hasn't been so high since 12. April 2018 - currently the Daily range is almost $1,000!!
At the moment there is almost impossible to make any bigger assumption that where the price can land because the pump just happened. We catch that move nicely and to make other precise decisions then we need to collect more data to make a good technical analysis
but still, we can discover some areas and behaviors from the past.
First of all the strong area which is around $5,000:
It has worked first time as a resistance level
in September 2017 but the area is strong because of the candles breakthroughs:
As you see on the image above there are only two candles managed to crack this level and those breaks have ended up with super-strong candles. Also, we can count this level as a direction indicator. If it has managed to break through from $5,000 then it has made pretty big moves to the break direction. Currently, we have got a rejection from this level and I can assume that this level holds us for a while because the market has to "breath" some time to collect another buying power which will guide us through the $5,000. The Daily range is too high already so, I can say that this was the current mid-term high but still remarkable run from bulls!
The major reason why I think this could be an area where we get a rejection is the BTC price behavior from the past:
The Fibonacci Power
Half a year ago there were multiple idea posts where they all mentioned about the certain pattern on the crypto market and this certain "pattern"/behavior was the Fibonacci retracement
golden ratio 62%.
Three times the price got a rejection almost perfectly from Fib 62%. It occurred on 5. May 2018, 25. July 2018 and 4. September 2018 and NOW it comes again into the discussion ring. As said before, the $5,000 level has been historically very strong and now it becomes even stronger if we add the behavior into this area. So, definitely watch out for that, do not FOMO, do not get too excited. Ok, excited you have to be, come on this was awesome move but not too excited ;)
The third obstacle which should start to work as resistance is the Daily 200EMA. Currently, the EMA200 is around $4,607 and let's see where today's candle may get a close! Above of it would be nice but still, can't make any bigger assumption after that!
SUMMARY: Those were my quick thoughts and analysis after the current pump. Please do not FOMO, let the move settle down, let's collect more data from the current levels!
Some small confirmation areas:
A daily candle close below EMA
or even below $4,500 could be definitely a bearish
A daily candle above 200EMA would be just a small bullish
sign, nothing remarkable but a big bullish
sign would be a candle close above $5,000 (just in case this $5,000 level but this is unlikely)
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Have a nice day,
*This information is not a recommendation to buy or sell, it is used for educational purposes only!