Bitcoin price rose gradually earlier today to a day high of around $365. As per yesterday’s analysis, bitcoin price failed to overcome the resistance corresponding to the point of intersection between the Gann 1×1 Angle and the 23.6% Fibonacci retracement level at around 20:00 hours. According to the Gann Angles we plotted yesterday, bitcoin price is expected to face another strong resistance level at exactly 00:00 on Monday, which is a few hours away from now.
Gann Angles:
The beauty of Gann angles is that they utilize some integration concepts from the book of “Calculus” to help us estimate the rate of rise or drop of a certain asset. Gann angles relate the rate of rise or drop of a trendline to the angle the trendline forms with respect to the horizontal axis X. As we explained yesterday, points of convergence between Gann angles and key Fibonacci retracement levels represent key support and resistance levels at specific time bars on charts in the future.
Strong Resistance At 00:00 Hours, 30th of November:
Let’s take a look at the 1 hour (BTC/USD) charts from Bitstamp and keep the Gann Angles and Fibonacci retracement we plotted during yesterday’s analysis (look at the below chart). We will also execute the stochastic oscillator. We can notice the following:
- Bitcoin price failed to overcome the resistance today at 00:00 that corresponds to the point of intersection between the 23.6% Fib retracement level and the 1×1 Gann Angle (The purplish arrow on the below chart). However, later on the market’s buying volume built up and bitcoin price soared to a high of around $365.
- Bitcoin price will be facing another strong resistance level at 00:00 hours on Monday, which corresponds to the point of convergence between the zero Fib retracement level and the 1×1 Gann angle. With the current market buying volume, it is unlikely to see this key resistance level broken at this specific time bar.
- The stochastic oscillator values now around 80, which reflects that bitcoin is overbought. This also goes along the same data we concluded from the Gann Angles placement. Accordingly, we won’t likely see the resistance at $370 breached within the next few hours.
Conclusion:
Bitcoin price rose slowly today to a high of around $365. As per our technical analysis and Gann Angles placement, it is unlikely to see bitcoin price exceed the $370 resistance level within the next few hours.
Charts from Bitstamp, hosted on Tradingview.com
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