Bitcoin: Strong Fibonacci Resistance 1D (Apr. 29)

X FORCE GLOBAL ANALYSIS:


Bitcoin has been on a bullish rally within a parallel channel. In this analysis, we explore the bullish and bearish cases for bitcoin.

Bullish Evidence

- We are trading within an ascending parallel channel on the daily
- We have seen 7 consecutive green candles
- The Relative Strength Index (RSI) is forming higher lows and higher highs
- The Moving Average Convergence Divergence (MACD) also shows an uptrend, with bullish histograms after a golden cross

Bearish Evidence

- However, on the bigger picture, we are trading within a descending parallel channel, creating lower highs and lower lows
- We have spotted a bearish divergence on the shorter time frames
- Prices have reached the 0.618 Fibonacci resistance
- The RSI is reaching overbought levels

Market Sentiment:

Long short ratios are at 67 to 33, with significantly more longs than shorts, despite the strong price resistance.

What We Believe

While the bullish scenario remains intact, we see a lot of resistance around the 0.618 Fibonacci resistance. A break below the channel support would confirm the formation of a new bearish trend.

Trade Safe.