Bitcoin produced three consecutive daily bullish candles on the daily chart. Sunday’s candle was a bullish candle, but it closed within the resistance of Saturday’s daily candle. Today’s intraday price action has been bearish so far. Thus, it might be a time for Bitcoin to have a correction on the daily chart.
Let us have a look at the Daily-Bitcoin Chart.
The Daily-Bitcoin Chart
The chart shows that after making a new highest high on Saturday, Sunday’s daily candle closed within that resistance level as well. The chart and the price action suggest that it might be a time for the price to have a correction. The level of 9841.30 might come into the game and play an important role at the time of correction. There is a strong possibility that the level may be held as the support level and produce a daily bullish reversal candle. However, there is another level which may be held as the support level too. The H4-Bitcoin chart explains it better. Let us have a look at the H4-Bitcoin chart.
The H4-Bitcoin chart
The chart shows that the price had a bounce from the level of 10305.90. Since it is a level where the price action of the H4 chart is reacted, thus it might be held by the daily candle as well. We must wait to find this out up to today’s close. Here is another thing to be noticed. The H4 price action shows that the price had a rejection twice from the level of 11178.80. This means this is a resistance level of a potential double top. If the neckline at the level of 10305.90 is breached, then the H4 traders will go short. This might make the daily Bitcoin traders wait further to get the opportunities to go long again.
The Bottom Line
The H4 Bitcoin sellers are eagerly going to wait for a neckline breakout to go short on Bitcoin. They must remember that the daily trend is strongly bullish, so the risk and reward ratio must be measured well before going short on Bitcoin. The daily Bitcoin traders must wait for a daily bullish reversal candle and an upside breakout to go long again.