Daily Report – Bitcoin and Market Update (July 08 2020)
Middaily session testing diagonal resistance of the wedge at 50% 9270 level of the entire 8.1-10.5k range. Current price action for bitcoin is also retesting MA100 resistance which once broken through, may result in 9570 test as the next local resistance. Momentum is still growing nicely and sustaining local uptrend. Consolidating under the resistance, which in uptrends is most often bullish. For this reason one can expect btc to break above the resistance and provide safer long entry as promised In my recent reports. Suggested you long the breakout RETEST, not the breakout – to avoid fake breakout/fakeout. Breakout target would aim at 10700s area of supply, that once broken would release the bulls in the fullest measure.
At the moment of writing this, we have already broken out above to 9470 completing the first phase of upside push of the orange bullish scenario. Breakout retest on hourly chart is technically speaking perfect entry area for LTF-MTF longs and should be taken as such. Double bottom pattern is confirmed with the breakout retest that holds the new support turned from prior resistance. Upside target of the double bottom short-term pattern is oscillating around 9600 and this would be first TP zone for short-term longs. While enjoying the pump, beware of the fakeout – don’t get too excited at local resistances. Remember we are still inside MTF range since end of April. It means that short-term price action is still impacted by larger scale lack of direction and hence more vulnerable and open to fake moves. For entry/exit decisions, as always, safest to wait for the session closing rather than open/close in the middle of the lasting session.
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