Bitcoin had a bullish day yesterday. The daily candle came out as a bullish engulfing candle producing at a level which was a level of resistance earlier on the daily chart. The level has become the support level. On the other hand, the level of resistance where the price closed is a Fibo level of resistance. Thus, it is going to be an interesting battle between buyers and sellers. Let us have a look at the daily chart to find out what the price action suggests.
The Daily Chart
The level of 8964.95 is the level of support here. The price produced a daily spinning top followed by a bullish engulfing daily candle. Since there is a double top with what the price started towards the downside, thus bearish bias is still on. Here is another thing that we must count. 10559.20 zone is a Fibo level of resistance, and that is where yesterday’s price closed. If the level of resistance ends up producing a bearish reversal daily candle such as an evening star, then the price might head towards the South again. Meanwhile, daily buyers have to wait to get a strong bearish price action to go short on Bitcoin.
Let us find out what the H4 price action shows.
The H4 Chart
The price went up to the level of 10717.95 and started having consolidation. The level of 10388.00 is the level which may play an important role here. If the level ends up producing an H4 bullish engulfing candle breaching the level of 10717.95, then the price will head towards the North with a good pace.
The Bottom Line
The daily sellers would love the price to be within the H4 consolidation zone. The H4 buyers would love to get an upside breakout to go long on Bitcoin. The H4 traders have the upper hand here. However, both daily and H4 Bitcoin traders have been having a tough time to be able to get a breakout to trigger for their entries lately. Let us wait and see whether it produces an H4 upside breakout today.