Do you know sometimes that trading bitcoin requires the most caution? Last week we envisaged a drop to $7,324 and now we didn’t only touch $7,324, but bitcoin price took a dipper dive.
Now we might see a correction that might make us happy. The MACD bullish cross has been made but we are being held in ransom by resistance at $7,324.
A high probability may present itself by breaking the resistance, but what is the probability of such instance taking place?
On the 4hr chart below, we see head and shoulder pattern forming; which is a reversal pattern. Though this may occur, we need a third confirmation with bitcoin price breaking our present resistance and testing it again before our next bullish entry.
Nonetheless, sometimes bitcoin price seldom obeys these rules and may spike without a restest. In such a case then our entry will be $7,783. Usually, my entry is at the cross of the MACD.
Looking at the technical indicators:
Major Support Level – $6,898
Major Resistance Level – $7,324
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