The wait is on as Bitcoin consolidates at USD 51K – under the .618 fib retracement resistance.
Price action continues to experience bullish pullbacks making higher lows with each successive advance.
Bitcoin , BTC /USD – Daily (D1)
Recent editions of the Technical Outlook explore the Golden Ratio, also known as:
Divine Proportion
Golden Mean
Phi
.618
The Golden Ration guides nature – bending even the financial markets to conform to its will…
Qluster analysts underscore that Bitcoin is no exception.
The behaviour of the BTC /USD trading pair around .618 has been promising thus far. However, it is too early to pass judgement on an upside continuation to USD 57K.
Allow price action to confirm an extended upside move by flipping the .618 into support.
Q’s Conclusion
Bitcoin , BTC /USD – 4 Hour (H4)
Bulls have an arduous yet straightforward task in advancing support for a continued uptrend.
As long as the BTC /USD continues closing above USD 49.2K on the H4 timeframe, this trend should continue above USD 51K.
Ensuring an objective and comprehensive assessment of the technicals, Qluster analysts provide an idealised ‘worst-case’ scenario for the bulls above.
If this uptrend support does not hold, remain vigilant for a retest of USD 46.8K – the 0.5 fib retracement level.
Wrapping up tonight’s Bitcoin analysis in this weekend edition of the Technical Outlook, Qluster analysts make a special mention to Litecoin.
In our recent article, the technical forecast offered a warning to bears contemplating a short on Litecoin:
Wake not a sleeping lion …
Since publishing, it appears someone poked the lion – Litecoin is awake and hungry.
Review a breakdown of the next move for Litecoin and evaluate the technical summaries noted below each chart:
Litecoin vs. Bitcoin , LTC/ BTC – Daily (D1)
Buyers successfully took the 0.236 fib retracement zone and currently looks to be in consolidation.
Look to the H4 below and examine the progression of consolidation
Litecoin vs. Bitcoin , LTC/ BTC – 4 Hour (H4)
Qluster analysts note a bullish H4 chart, with candle closes above the 0.236 fib retracement level boding well for the consolidation.
Litecoin vs. Bitcoin , LTC/ BTC – 1 Hour (H1)
Observe the flag progresses along nicely, with a break upside beginning to manifest.
Litecoin, LTC/USD – Daily (D1)
LTC/USD blasted above the D1 200MA.
Price action appears determined to flirt with the 0.5 fib retracement level at USD 257.
A word of caution to those considering a foray in weekend trading – the markets happily oblige generous donations from impatient traders.
Avoid chasing pumps during illiquid weekend conditions and regulate potential dip-buying to bullish consolidations.
See you again for the next update.
– q