This morning Bitcoin tried and failed to breach the strong resistance that I had drawn in my previous post. It was a pretty strong rejection, but I am not even close to being bearish yet. Bitcoin was overbought and exhausted by the time it tried for that resistance so I'm not surprised that we got rejected. Here's the chart that I'm looking at on the 4 hour timeframe:
We are already low on the 4 hour stoch RSI and we are no longer overbought on the RSI. I think that a severe drop will bring us to the 7.1k level for a touch on support before we blast through this resistance. Like I said yesterday, I really like what I see from Bitcoin over the past few days. Strong moves upward with slight drawbacks is a start of a bull trend. I think in the next 24-72 hours we will retest that support and in the next 2-6 days we will be breaking through that resistance. Fingers crossed! As always, feel free to provide input below!
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