Bitcoin continues to stay within the boundaries established since the start of the week. A lot of traders are wondering whether the latest ranging is a sign of some bullish potential.
Yesterday I posted the following chart:
Mentioning, “Price headed up to the 440, where it’s been tested… Whether it will be broken, I doubt – due to the fact we’re seeing the AC as red, and actually, on the Daily timeframe if we perform a longer Fib study, we can see that the 23.6% Fib is providing decent resistance”.
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Indeed, the resistance was decent enough to be held today as well, as once again price rose to 440, testing the 23.6% Fibonacci retracement level, circled in red (click to expand):
As we can see, the latest three candles are all classic consolidation candlesticks (circled in blue), of different types. The first is a bullish doji, the second a spinning top and the third (which admittedly is still in formation), is at the moment pretty much a perfect doji, with the length of its upper and lower wicks virtually identical. All this is a clear sign that there is indecision in the market, with the bulls fighting the bears of the past couple of weeks. The problem is that 23.6% is not allowing price to pass, and we could see this battle continue for a few days to come.
However, I still maintain that there will be yet another test of 23.6% this week, because I’m seeing signs from certain indicators, for example, we have the Stochastic Oscillator approaching oversold levels, whilst the Accelerator Oscillator has just turned green. At the same time, I believe the current low of 412 shall hold for the rest of the week.