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Bitcoin Hit Resistance at Recent Swing High


Since issuing a buy signal the other day, Bitcoin quickly jumped $40/coin.  There it met resistance at $780, which was predictable given that the recent swing high was stopped there.  $780 was discussed in our last update as a likely place of profit-taking.  This has come to pass.  The question is:  What is next?”


In my opinion, while of course there will be lots of profit-taking and turbulence along the way, there is little (long-term) resistance before ~$860.  There, price will hit the top of the square and could (perhaps) make a swing high there.  If price breaks above the top of the square, the 4th arc pair is a little above $1,000.


Like counting cards, one can never be 100% certain if the next candle will be red or green.  However, I can’t shake the expectation that a close above $780 will see a very quick rise that I for one wouldn’t want to miss.


Here is a shorter-term setup of the same daily chart, starting at the Aug 1 panic low.  Here you can see that pricetime was stopped by the 3rd arc pair.  The end of the square, in time, is 12/8.   End of a square is often a time of accelerations or reversals.  Will we see one here?  The charts are a mixed bag.  The longer-term setup referenced first, suggests this market is going UP.  The shorter-term chart is not so unambiguous.  The fact is, we are still on the dark side of the 3rd arc pair there.  Technically, hitting that arc pair was a sell signal.  If we get to the end of the square (12/8) before getting a close above at least the first of the arcs in the pair, I might consider taking profits and waiting until we get to the sunny side of the pair to re-enter the market.


Happy trading!


Remember:  The author is a trader who is subject to all manner of error in judgement.  Do your own research, and be prepared to take full responsibility for your own trades.


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