Despite the correction seems to be done, I am not satisfied at all on regards what we can see on the 4hour-chart of BTC/USD.Certainly, BTC bottomed around 7400 USD while I was expecting 7300 USD as a good entry point (see my post of 3 days ago) but the trading volume does not differ so much from the last days and even if we are upwards, this variable seems to be stagnant nowadays… You can see how different it was when we were seeing BTC growing on early May…
However, the Volume is one of the factors to take into account when you have to take decisions but there are is another much more important IMO and it is the historical data at short term now…
We can see that there are two important levels to watch out now, the Lower Support at 7550 USD, touched three times lately, and the Upper Resistance (8200 USD) also touched three times in Mid-May and on which BITCOIN seems to be moving towards…
Both lines are important right now, they give you an idea of the balance between Bulls and Bears, and it is also giving us some clues on what can happen in the short term if BTC is not able to break that Upper resistance:
If the Upper Resistance acts as so, we may expect a retest of the Lower Support on which I hope BTC would rebound strongly…if not… I am afraid we will see BITCOIN pointing towards the 6000 USD which is the target price of an ugly Head and Shoulders Pattern…
I know, I know, pure speculation? Everything will be clearer if BITCOIN breaks the Upper Resistance at 8200 USD as soon as possible but… that is asking so much for the moment…
Enjoy!
@toofasteddie
*Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently. Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.
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