Bitcoin Long Setup September 28, 2018

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Bitcoin has managed to increase significantly in the yesterday’s trading session and is now located above two very important resistance levels. I’ve told you in the previous report that we may have an important upside movement if the rate will stay away from the 6000 psychological level.

Price has changed little today, it seems undecided, that’s why it will be better to stay away and wait for a fresh trading signal because this could still be only a temporary rebound.

Personally, I’ll wait for the price to make a valid breakout above the crucial near-term resistance levels before I’ll go long again.

The rate is narrowing on the daily chart, but you should be ready for an aggressive and broader movement soon.

You can see that the rate has managed to get back above the downtrend line (upside line of the major chart pattern). It has found strong support at the 6425 static support and it is struggling to increase again. It remains to see if this will really represent a valid breakout above the downtrend line because we had two false breakouts in the past.

However, I believe that only a valid breakout above the upside 50% Fibonacci line of the descending pitchfork and above the first warning line (WL1) of the ascending pitchfork will really signal a further increase.

Technically, the rate could increase a little in the upcoming days and could make only a false breakout above the mentioned lines or it could fail to reach the and then will drop aggressively again. That’s why I’m waiting for a valid breakout above the near-term resistance lines before I’ll go long again.

Price could increase after the failure to approach and reach the 6000 psychological level in the last attempts. It should move higher very quick to be able to start a broader upside movement because if it will continue to stay much below the 7000 psychological level then we may see a sell-off. I want to remind you that a larger drop will appear only after a valid breakdown below the 6000 psychological level and most important below the median line (ml) of the descending pitchfork.

 

 

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