Bitcoin Rejects Resistance
After a green triangle on the KRI gave us hope for renewed momentum, Bitcoin took pause just before the central moving average of this indicator, rejecting the vacuum zone between $9.7K and $10.2K. It retraced back to the $8.9K handle, as we anticipated it might, due to a corrective phase on 30-minute charts.
The Kovach Momentum Indicators appeared to show us some hope yesterday, but now appear to be bearish, or at best, ambivalent. Although we did see that green triangle on the KRI at day charts, the price action seems to have stalled for the moment between the lower bound and the central moving average of this indicator. At this point, we have a 50% chance of testing the central moving average, currently at $10.2K, and the lower bound at $8.5K.
Our Elliott Wave analysis seems to suggest that BTC is trying to come out of the 2nd segment of the impulse wave. Unfortunately, any burst of momentum seems to get sold hard. As a reminder, to confirm wave 3, we must break relative highs at $11.8K.
BTC seemed to have made progress in its attempts to regain its previous range in the $10K and $11K handle. Unfortunately this has faced a setback as it swiftly retraced back to test the upper $8K handle again. Currently, it is hovering around $9.2K, and must break $9.3K and $9.7K before testing $10.2K again. As we predicted yesterday, a correction can be expected before testing $10.2K. After $10.2K, we will find resistance at $10.4K, $10.6K, $10.8K, and $11K, where BTC held a range period before all this. From below, we have support at $8.9K, $8.6K and finally $8.5K.
CONCLUSION - Although Bitcoin showed a lot of promise yesterday, sellers were quick to push it back from the upper $9K handle to the lower. Currently, we are hovering around $9.2K, and it seems equally likely that we could make a run for $10.2K, and test $8.5K again. Investors looking to enter a long position should be wary of this fact. Pay attention to levels from below at $8.9K, $8.6K and $8.5K. Resistance will be met at $9.3K, $9.7K, and $10.2K.
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