Bitcoin produced a good-looking bullish daily candle yesterday. The candle made a breakout at the level of daily resistance in which every Bitcoin trader was eyeing at earlier. However, the day before yesterday’s daily candle had a rejection from a level of resistance which is a bit further up. Today’s intraday price action has been bearish so far. For the daily traders, that intraday bearish move is actually a correction. If today’s price starts moving towards the upside by making another breakout, then Bitcoin daily traders will push the price towards the North further.
Let us have a look at the Bitcoin-Daily Chart.
The Daily Chart
The arrowed candle made a breakout at the level of 9070.90. The buyers might have jumped into the market at the very outset today. However, rejection of day before yesterday’s candle might have held them back. Fact remains that if an upside H4 breakout takes place, and then the daily traders will go long and push the price towards the upside. Let us have a look at what the H4 chart indicates.
The H4 Chart
The H4 chart produced a bearish pinbar at the resistance level. The price has been heading towards the downside since then. The level of 9070.90 seems that it might be held. The price reacted to the level a number of times and this is a Fibonacci support level as well. If the H4 chart produces an H4 bullish reversal candle at the support level and a breakout takes place at yesterday’s highest high, then it would be a buying signal for the H4 traders.
The Bottom Line
The Daily and the H4 traders are going to eagerly wait for an upside momentum today. The breakout at yesterday’s highest high is the key for the buyers to attract them to go long here. If the breakout does not take place, then the price is going to get into a range, which may make Bitcoin be sluggish for a while. Let us wait and see what actually happens.