So, Bitcoin is currently traversing upwards, right? It’s like it’s on an uphill hike and it’s been sticking to this path for the last couple of days. But, here’s the kicker – a new chatter about the Bitcoin price reveals a tiny problem. It seems that trading has become as slow as a snail racing across a hot sidewalk, and there’s this new pattern on the 4-hour time frame.
When you look a bit closer, you see that every time Bitcoin gets a bit of a boost, like a balloon rising upwards, it’s like it hits an invisible ceiling right around $43,700. And, wouldn’t you know? Over the last few hours or so, Bitcoin’s price has dipped a bit, by around 4% give or take. Even though yesterday we saw a huge bullish CVD Divergence – think of it as a sort of green light for a bullish wave – the same thing happened back on November 12th. Back then, we saw a bit of a surge and then, boom, a decrease.
Now, that important arena, around $42,200, and a new high for the day’s timeframe support at $42,500, look like they’re holding Bitcoin up at the moment. It’s like a friend giving you a hand when you’re struggling with a heavy load. But if we peek at the 4-hour timeframe on the Coinbase chart, it’s clear that over the past few weeks, trading has decreased. We can think of this stage as Bitcoin taking a breather on its upward journey.
Also, there’s this RSI indicator that’s looking like it’s about to cry wolf – it’s forming a symmetrical triangle. Coupled with the slowing trading activity, we can take this as a sign that Bitcoin is in consolidation mode and something major could be on the horizon. Right now, most bets are on a jump in price, seeing as the trend of the day, as well of the 4-hour and hourly charts, is looking upward.
Backing up this hopeful outlook is the RSI showing a bullish divergence. Imagine a sprinter at the starting line, ready to bolt – this divergence could signal a similar dash upward.
The stochastic oscillator is also waving some green flags – usually, that’s been a good sign for Bitcoin’s prospects in the past. Think back to those times of a clearance sale when everyone floods in to snag a deal – those times of oversold conditions have always led to the price of Bitcoin shooting up.
There’s just a slight wet blanket in the mix here – some pessimism based on order flow due to the CVD showing a high-high and Bitcoin’s price showing a bit of a slump. Nevertheless, overall we’re looking quite positive here. The only rain on this parade would be a break below the weekly trend and the upward path, without any swing backs or grabs for cash below the previous low.
If we’re looking at resistance, a new daily high seems to be $43,500. If Bitcoin manages to tackle that, we might just witness a new high above $45,000.
For all you traders out there with a sharp eye, perhaps it’s wise to lean towards long or buy positions, but make sure to have your safety net below the current hike path and the support areas. If it turns out we’re wrong and you get stopped out, don’t lose hope. You could have another shot at the apple near the recent low dips, or with the weekly high support.
Summing it up, we’re crossing our fingers for an upward trend for Bitcoin, but let’s tread lightly and keep a close watch on the key resistance and support areas to adapt our strategies to match.
Disclaimer: This is not a financial advice and traders are requested to do their own research to back up any analysis above and trade wisely.
