Bitcoin – Key Resistance and Important Breakout
Bitcoin / Dollar BITSTAMP:BTCUSD
The price slides sideways at 4000.00 resistance level . We can see 3 attempts to break this level which were not successful and now there is the 4th attempt. Will the market move above this resistance?
If we look at the indicators, we can get the following signals.
Ichimoku indicator tells us about the bullish trend . It means if the market continues the trend movement, the resistance level should be broken. But at the same time, DMI indicator confirms range market conditions. ADX line moves below the signal level, and it gives a signal that the market does not have power for strong price movements. Buyers and sellers are not so active to push the price upward or downward. Thus, the sideways movements at the resistance level with false breakouts, it can become a reality for several days or maybe weeks.
But if the market gets support from outside, any news or other factors which can increase the demand, the price will be able to move upward and break 4000.00 level. If so, the market will confirm that it’s going to climb higher and 4200.00 level will become a new target. It will be possible to use this breakout for opening short term long trades. With stops below the local swing low and profit targets likes 4200.00 and 4500.00 resistance levels. If DMI becomes bullish and ADX line starts an upward movement, these signals will be good confirmation for the breakout.
Source: TW DLavrov