Bitcoin Short Term Resistance possible at 8400, if not, 11192 is the next resistance zone
The rise in Bitcoin over this past week has been fantastic and strong. The volume has been appropriate and the timing perfect. However, it’s important to not get too greedy and to learn to take some profit in key zones. No one ever went broke taking profit early, but plenty of people have gone broke or have lost significant profit by hanging onto ‘hope’ or greed for too long.
Now I’m not saying that we need to take everything off the table. But a portion of your exposure and profit should be taken. Probably one of the things that new traders (and traders that are transitioning into profitable traders) have problems with is taking profit off the table. It’s a hard thing to do: to take profit. For whatever reason, we are very much ok with moving our stops and suffering significant paper drawdowns but when it comes to taking profit, we wait too long. Humans are odd.
Bitcoin is near one of these zones.
The thick green line below represents the major harmonic price level of 7562.13. And the red line above that is the 8192.22 value area. More importantly, that red horizontal line represents a pivot and when price approaches this level immediately and swiftly from crossing a major harmonic, this zone is treated as an extreme overbought condition. We also have an untested Gann arc (the yellow arc) and an untested 45-degree angle (the diagonal right below the current price action. When I say untested, I mean price has not retested these zones yet to support the higher prices. In smaller time frames, we run the risk of a parabolic rise.
Now, saying all of this, we also have a good bias for prices continuinghigher. On a daily and weekly chart, Bitcoin could certainly rise to the 11192 value zone, which is the first significant value area to test. Consequently, the 10k area is not a technical area of importance – it’s actually a low volume node. So we could see a massive blow-off move through the 10k zone, followed by a further expanded move to the 11192 value area before we get any significant pullback lower.