After bottoming out at the support, bitcoin started rallying up, forming higher highs and higher lows on H4 and H1. The strong resistance on the daily where the market stands currently, is a strong foothold which might give a tough time to break. Apparently, the price action is dictating the bullish momentum forming on the resistance level which brings it to the verge of breaking out of the resistance. Once broken, we will simply take the retest long position on Bitcoin. As the price action is forming bullish momentum and engulfing candles, we tend to see the breakout buy for the resistance and continue up. On the left hand side, we also see a clean traffic with clear candles.

The descending trendline from the daily is in play as it broke out for buys, with price action validation. After the breakout buy, market did not retrace back yet, to form another breakout buy of trendline on H4. It is still forming the trendline on H4, which if broken, will surge with volume. There is another descending trendline in formation which would be broken out immediately once market leaves the resistance level.

There is no Fibonacci retracement indication in the current scenario we are analyzing our positions for.

EMA 50 just broke out for buys and is being retested by the resistance turn support. This support is in confluence with the EMA 50. On the upper side, we have a EMA 200, which needs to be breached once the resistance is broken.

Both the oscillators are in a bullish region. RSI is at 63 and CCI at 13. The oscillators are escalating fast towards the over bought zone as the momentum on bitcoin price action is building. At the current support level, we have room for both the oscillators to tap their over bought regions, hence, high chances of oscillators to reach their exhaustion points.

Bitcoin would rally towards the 50,000, once it leaves this zone of 45,000. The resistance zone would be our take profit area.

Stops hit and now up and above!

Feb 23 2022

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