The market structure seems to be forming a bullish structure forming a higher high and higher low. These sentimental creation on bitcoin is giving a sense of bitcoin rally. At the support level, we will be looking to go long.

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.

Fan trendline pattern has been formed on the bitcoin. It means, the same pivot point has three different elevations at different price points, which have been broken out and the last one is about to be broken out. This gives us a good confirmation for the bullish heads up on bitcoin. The earlier breakout buys have been validated by the breakout buys. At the support level, we also have an ascending trendline to be able to reject the support area.

We are eying the 75-78.6% in confluence with the support level to go long on this stack. This should act as a demand area for the liquidity grab for the bitcoin and this is in confluence for the position to go long.

EMA 50 just broke out for buys and is being retested by the resistance turn support. The death cross just turned bullish. At the support level, the EMA 50 is in confluence and will be tested along with the retracement level.

Both the oscillators are in a bullish region. RSI is at 54 and CCI at -19. 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.

Waiting for a retracement

Mar 27 2022