Bitcoin produced a bullish daily engulfing candle yesterday from a significant level of support. The price on the daily chart has been within a long range for a number of trading days. The daily traders have been eagerly waiting to get a candle like that at the support level. It seems that the buyers have got the candle which may push the price towards the North and eventually helps the price come out from the range. It is still a long way for the price to go and make the breakout. Nevertheless, the journey might have begun yesterday. Let us have a look at the daily chart to find out more about this.
The Daily Chart
The level of 7428.10 produced yesterday’s bullish candle. The price has reacted to the level a number of times. The price now has to travel all the way to the level of 9054.35 and make a breakout at that level to offer long entries for the buyers who trade on big time frames. However, there is a resistance nearby which might play an important role in Bitcoin’s next movement. The H4 chart shows it nicely. Have a look at the chart below
The H4 Chart
First of all, the level of 7463.35 on the H4 chart makes more sense. Look at the level how the price reacted to it earlier. The resistance level that I have just talked about it is at the level of 8086.95. The level has been a significant level where the price reacted a number of times as well. If the price makes a breakout at the level towards the upside, then the price would head towards the level of 9054.35 with good momentum. However, the level of resistance that we are aiming to be broken here might as well be held by the price. It may then push the price to go towards the South to make a breakout towards the downside.
The Bottom Line
By looking at yesterday’s daily candle, it seems that the H4 buyers are going to take control of Bitcoin soon. The level of 8086.95 holds the key though. Let us wait to see what the price does at that level.