bitcoin bull Trend Pivot
Ƀitcoin is at a major price pivot right now. The structure of the last 3 bull market moves (see chart at the bottom of the page) is very similar, and in the coming days it will have to pick a direction. Currently the price action is more like the bullish fractal in the center of the chart than the bearish one to the left of the chart. The daily candles are printing neutral grey, which is too bad because even the slightest bit green or red will kick start a trend.
There was not a large blow off top price spike to mark the top of this last bull run, so the possibility of more upside has to be entertained. The StochRSI is about to cross 50 and head to oversold. We are seeing clear diminishing volume on the chart as well. This is important because that type of volume profile resolves itself with a large move and rarely a small one. If this plays out we could see upside action for the last half of July with targets based on the FIB Extension tool.
Often I talk about trend lines and triangles, but the short term chart (the fist chart below) is hinged on a horizontal level. The daily candles are not green thus crucial to know your personal “line in the sand” so you can exit before a bear trend begins. Chances are that line in the sand is the lower yellow line on the chart seen below. Wicks are important too, but when that many candle bodies form a straight line then that horizontal level becomes the key pivot on the chart. That is what I see happening thus the level of about $665 is the bearish pivot zone.
July 4th, 2016