Bitcoin Renko chart shows support holding, short term resistance ahead
Yesterday’s Bitcoin chart showed a support level at the $8755 value area, which is a very strong support zone for Bitcoin because that level is a natural middle harmonic price level. So far, so good. It has held. And at the time of writing this article, Bitcoin has jumped nicely back into the $9,000 value area, but right up in front of us is some trouble.
Yesterday’s Renko Chart
Price is holding nicely above the $8755 zone and it is reacting positively to higher prices.
Today’s Gann Geometry Chart
There is some danger here on this chart. The 4 Hour candlestick still has about 3 hours to close (it’s 1600 CST at the time of writing this article), but the volume is significant when compared to the previous 4 hours. Three key resistance zones right in front of us are:
- Resistance at the 1×8 Gann Angle (thin blue diagonal line).
- Resistance at the %50 Fibonacci retracement level.
- Resistance at the previous swing high (9800 value area).
This is a trifecta of difficulty that Bitcoin needs to thoroughly advance through for us to consider higher prices forming over the next week and certainly through the weekend. The $10,000 value area will be a tough nut to crack… maybe. There is some sneaky sneak activity on the volume profile which shows there is very little price history traded in the $10k zone. This indicates, to me, that price will fly through that zone once it gets to $10k with the first resistance zone near $11,4000. $11,400 is the new area where the scared and frightened previous buyers will step in en mass. And higher than that we will see more FOMO traders lifting prices up.