Conclusion for today’s Bitcoin Analysis:
Conservative strategies to buy (go long) Bitcoin involves initiating an order(s) on a breakout above ~6154.60.
A logarithmic scale is used on the 6 hour timeframe for today’s Bitcoin analysis. Besides, the Bitcoin candlestick chart displays price action since January 02, 2018 to current date.
February 06, 2019 produced the lowest price in Bitcoin ever since its price peaked at ~19,891 on December 17, 2017.
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The 3 major points for analysis today are the bullish price channel, current bearish trend line and previous support level for Bitcoin.
The price channel indicated on the chart is from the ~3405.30 (February 06, 2019) price low with the main benefit of putting the bullish swing into perspective and also for use in projection upon confirmation.
The most recent test of the upper region of the boundary at ~5466.10 on April 24, 2019 also intersects the long term bearish trend line in Bitcoin that has been established since January 18, 2018.
Price of Bitcoin has currently retreated from the bearish trend line and therefore is important to watch for further development assuming only a bullish order(s) is considered.
6154.6 and 5435.2 presents a key boundary and/or price level to watch in Bitcoin because these price levels have provided support in the past for Bitcoin with February 2018, July 2018, September 2018 and October 2018 as examples. The aforementioned price level also crosses the path of the bearish trend line and bullish channel.
A change of polarity (i.e. previous support turning into resistance in this case) is therefore plausible and needs to be monitored in conjunction with momentum.
Buying a breakout above the upper boundary of resistance (6154.60) is considered a conservative strategy, while less conservative strategies to go long (buy) would seek to initiate an order if price manages to retrace and successfully test the lower boundary of the bullish channel.
The third successful test of the lower channel boundary provides confirmation which therefore makes the channel valid for sure in Bitcoin price forecast. A break below the lower boundary of the bullish channel is considered bearish and the February 06, 2019 price low is expected to be challenged and/or price close lower.
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