After a volatile weekend for the Bitcoin market, prices rebound back over $9000, buyers stepped in above $8400 and pushed prices back over the 200 ma.
Taking a look at the 1 day candle chart we can see that buying support is around the 200 MA, this is a bullish signal on the shorter term.
Through this we can see that a floor is being built between 8000 – 9000 usd by the bulls. My short term support is still around 8800 – 9000, with the latter being critical.
In the other camp the bears have been nailing the ceiling together between 9700 – 11 000, this resistance zone is confirmed by the longer term bearish trend line.
Looking towards the Inverted H&S pattern, it is still a valid bullish formation as long as prices stay above the right shoulder.
This is around $9200, please note, just my personal opinion (the blue line is the “nek” of the H&S). I moved this to $9000, as it is the main psychological support zone at this point.
Looking towards the indicators there is a change in the momentum, in favour of the bulls, lets take a look at the 1hr chart.
The 1hr chart is speaking of bullish wonders, we can see a nice little bull flag formed, momentum show us that the bulls are regaining control and we have just ticked into the positive zone.
It is however IMPORTANT to remember that we are still in a bearish market, any buys at these prices will be attempting to call a bottom, and should be considered HIGH RISK.
The safer buy will always be once the market has confirmed that the bear trend has ended, however lower risk, lower reward.
With all that said the market is looking healthy and unless we are faced with some FUD or a Tether collapse, we should keep ticking higher until we test the top of the trend channel again.
Feel free to discuss my trade ideas with me on Discord. Safe trades.