BTC/USD: Technical Outlook, Edition #40 (03/07/21)
Buyers triumph in their struggle to wrestle dominance from Bitcoin bears - will price continue to acquiesce? Check out Q's technical forecasts and decode BTC's next move in this Saturday edition.
Bulls bask in their decisive victory at key support - can buyers now maintain the commanding position?
Bitcoin successfully defended uptrend support at USD 33K from the bears and now looks to charge at USD 35K.
In yesterday's Technical Outlook Edition #39 (02/07/2021), we considered the significance of a daily (D1) close above USD 35K and USD 37K for bullish confidence.
To reiterate - this is imperative for BTC/USD to maintain the momentum for an upward reversal.
Bitcoin, BTC/USD - 4 Hour (H4)
The H4 BTC/USD chart above identifies an upward trending parallel channel with Fibonacci retracement zones marked from the swing high to swing low.
How can we apply this in practical technical analysis?
The price must rise above the 0.5 Fib level (USD 35K) and again over the 0.618 Fib level (USD 37K).
If price-action acquiesces, this will invalidate the bear flag pattern and indicate correction entered its climax.
Let's extend this hand across to the H4 ETH/USD chart and search for similarities in price-action to Bitcoin.
Ethereum, ETH/USD - 4 Hour (H4)
Funnily enough, Ethereum also stumbled into some heavy resistance at a 0.618 Fibonacci retracement level.
Moreover, the multiple rejections around USD 2.3K confer substance to the argument.
Bullish sentiment appears to be re-engaging as Bitcoin and Ethereum establish robust support around their current price levels.
Anticipate an advance on the 0.618s around USD 37K and USD 2.3K, respectively.
See you again for the next update. - q
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