Bitcoin Bull Is Taking Shape; Retracement Pattern Reveals Short-Term Upside Potential

Bitcoin continues to stay at sub-retracement levels as price action hangs in the high 6400 range. At the moment, BTC seems to challenge what looks to be the “bottom” on the daily scale. The flat bottom created by the last two daily candles show the same 6280 close then open on the very next candle which came back to take about 2/3 of the previous day’s price action back – a good sign if looking for any sort of bottom. BTC now seeks out 6800 resistance as 6400 is firm support and is now holding. The hourly scale shows price attempting to hold three things: support, the MA(moving average line), and stochastic momentum which we will cover in the tech specs.

Rogue* Wave Analysis shows that this leg down took just about the entire previous leg’s movement (leg up). This is a reversal sign, yes. However, there is some statistic relevance of one other item at hand which comes in the form of a pattern. The previous major bottoming, as shown here on the daily scale, produced an inverse head-and-shoulders. This double bottoming is now being challenged as price took a pivot here at approximately 6280. This is almost exactly the same place price has pivoted several times after a downtrend of some sort, short or long-term.
The tech specs begin to shed light on the case for bulls as well.
With the massive sell-off, retracement once again begins to take place.
Stochastic levels are looking to pivot up in the oversold region(<20) daily.
Hourly stochastic levels now begin their exit from this zone.
MACD readings are still negative daily, but this should be used as an exit tool at this time. A flattening should be seen soon if support continues to hold at 6400.
Support and Resistance stand firm at 6k/6400/6800/7200.
BTC is currently a hold. Buy can also be instituted.
Keep downside protections under support.
Futures Traders – trade the trend. The short-term trend is now long.