Amid the high volatility we have seen on the financial markets, cryptocurrencies, preferred by many traders exactly for their volatility, mark another increase.
And despite the increase of over 80% from the lows around $3850, there are signs that the market has not yet found a bottom.
On the 1D chart the price is near critical resistance levels.
Also taking in consideration the corrective character of the current move up, there is a big possibility price to get rejected around 0.618-0.7 Fibonacci retracement around $7200-7600. In case of a break up, next level of resistance is located around $7700-8200.
4H chart is printing ascending price channel with decreasing volume. If this channel is a bear flag, target measuring the flag pole would be around $3000. 4H chart showing bearish divergence on the RSI.
As the downward movement began last month, Elliot wave analysis signals for a new impulse movement to $ 3,000 levels.
Junior Trader Radi Djuma