Further to my post last week about Bitcoin support and resistance levels, the charts have progressed giving new pivots points to calculate from.
Following on from last week I mentioned there could easily be pull backs in the range of 36-38000 from the recent high of around 40000. Things went a little further than that but in no way negates what I was suggesting.
Using both a 4H and daily chart as reference (4H presented here) there is a clear wedge as marked by the thin blue lines.
The green lines need a little explaining. They point out not only obvious high/low pivots but more importantly a rare chart pattern called a Gartley which is like either a W shape or an M shape but more specifically it's a pivot within a retracement. It turns out that although I said there wasn't any confluence last week, there was a single Gartley pattern which formed and this ended up working as a point of retracement from the recent 40000 level after completion of a W Gartley pattern. What then transpired interestingly is ANOTHER Gartley pattern this time an M has formed on a 4H chart as an overlap from the previous W which is unusual and then just as the 40000 level was a resistance so too was the 34000 acting as support. You can see after the green line reaches 34000 there is a bounce back up to nearly 38000.
So where does that leave us today now that the... (More)