Hello traders,
Looking at the 4 hour chart, Bitcoin is trading extremely narrow range once again. Early today, Bitcoin traded above $5300 and attempted breakout from April 10th high ($5400), but it was rejected as of now.
Now, the trading range is extremely narrow, which means this is actually very intense moment for both sides. So here is how I will trade:
Bulls:
-In case of bullish breakout, first criteria is break above $5400 with large volume. In case of bullish breakout, the target will be $6000.
-Second criteria is fast length must go above 40 in MACD. Anything below 40 will create bearish divergence, which will be bearish signal.
Bears:
-Double top formation definitely puts bears in favour. Anything below $5300 or breach or diagonal black trendline will be a bearish entry.
-There are few key supports I am looking to scale in: $5175, $5100, $5000, and ultimately $4800.
I am slightly leaning toward bearish side, as majority of altcoins, like Litecoin, Ripple, Ethereum and EOS are not leading Bitcoin price (only ICX, ADA and NEO had good run).
Happy trading!
Looking at the 4 hour chart, Bitcoin is trading extremely narrow range once again. Early today, Bitcoin traded above $5300 and attempted breakout from April 10th high ($5400), but it was rejected as of now.
Now, the trading range is extremely narrow, which means this is actually very intense moment for both sides. So here is how I will trade:
Bulls:
-In case of bullish breakout, first criteria is break above $5400 with large volume. In case of bullish breakout, the target will be $6000.
-Second criteria is fast length must go above 40 in MACD. Anything below 40 will create bearish divergence, which will be bearish signal.
Bears:
-Double top formation definitely puts bears in favour. Anything below $5300 or breach or diagonal black trendline will be a bearish entry.
-There are few key supports I am looking to scale in: $5175, $5100, $5000, and ultimately $4800.
I am slightly leaning toward bearish side, as majority of altcoins, like Litecoin, Ripple, Ethereum and EOS are not leading Bitcoin price (only ICX, ADA and NEO had good run).
Happy trading!
Now it is a very tricky range to trade again because there is no clear resistance till $6000. The purple line is acting as diagonal resistance at the moment, and break for this trendline is another sign of a bullish breakout. We are also seeing golden cross as well.
In bearish perspective, Stoch RSI is over 80 and RSI is also overbought in 4 hour time frame. Bitcoin is also forming a tenative rising wedge, which is a bearish formation. What concern me the most is the fact that altcoins are not pumping as much as Bitcoin, which is very strange in cryptocurrency space. Usually when Bitcoin goes 4-5% a day, all major altcoins should go up at least 10%, which we are not seeing today. Bitcoin shorts are getting abnormaly high again so I am getting a little bit cautious in next few hours.