Hi friends, lets take a look at the Bitcoin market to get a better idea of what to expect going into the weekend.
Lets zoom out to the 1 day candles for the diagnosis. I inserted the inverted H&S candlestick formation into the chart as I see so many analysts pointing to it at the moment.
While the inverted H&S is undoubtedly a very bullish formation, markets need to consolidate above a certain zone for the breakout to occur. Sometimes the breakout can fail a few times before eventually going higher.
The price is approaching the 200 MA on the 1 day and I will look to see if the bulls come charging or if they are shy.
The latter will send us below 9k and the market will have to adjust.
Critical support for me at this point is 8800 – 9000 usd.
The next level of support would be $7200 – $7500 if the above mentioned fails.
The resistance zone has now dropped lower to 10k – 11k, which is a good indication that the bears have been busy building a ceiling around those levels, like usual, lets be patient and see what the market does.
Critcal resistance in my opinion is around 10500 and we should see signs of life when the bulls smash through on the way to 11k.
I am looking to a possible breakout trade above 11 555. Safe trades.