Bitcoin price dropped today to print a low of around $350. The bullish wave has slowed down after piercing the resistance level at $350. Today’s trading volume wasn’t as high as yesterday’s. It seems that the bulls will not be able to keep bitcoin price supported above $350 for so long, so it is expected to drop below that crucial resistance level within the next 1-2 days.
Testing The 1×1 Gann Angle On The 1 Hour Chart:
By examining the 1 hour (BTC/USD) charts from Bitstamp (look at the below chart), plotting Fibonacci retracements between the low scored on the 25th of November ($317.62) and the high scored on the 26th ($354.39) and plotting the 20, 50 and 100 SMMAs, we can notice the following:
- Gann Angles: We executed the 1×1, 1×2 and 2×1 Gann angles between 2 bars; (bar 1) the low scored on the 25th of November ($317.62) and (bar 2) the high scored on the 26th ($354.39) (look at the 3 rays marked 1/2, 1/1 and 2/1 on the below chart.
Gann angles are technical analytic tools that are utilized to predict key support and resistance levels in certain time frames in the future. Moreover, Gann angles can give us a clue regarding the strength of the current market trend. Points of intersection between Gann angles and the Fibonacci retracement levels represent strong resistance points.
- Bitcoin is now trading near the 1×1 Gann angle which reflects a relatively balanced market. On the other hand, price failed to rise away from the $350 resistance level as the uptrend was hurdled by the 1×1 Gann angle. Also, as shown on the below chart, in a few hours, bitcoin price will be testing an even stronger resistance point which corresponds to the point of intersection between the 1×1 Gann angle and the 23.6% Fibonacci retracement level at $357.31, so this relatively strong resistance level is rather hard to be broken at the current buying strength of the market.
- Bitcoin price is now below the 20 period SMMA, but higher than the 50 and 100 period SMMAs, which reflects that the bullish wave is slowing down.
Conclusion:
Bitcoin price failed to continue rising and scored a low today of around $350. As shown by Gann’s angles, bitcoin is price will be testing a relatively strong resistance level during the upcoming few hours; however, according to our analysis, it is unlikely to see this resistance level broken within the next 24 hours.
Chart from Bitstamp, hosted by Tradingview.com
