Technical analysis Bitcoin. BTC-USD on July 18, 2018July 18, 2018
The market managed to form the reverse H&S pattern, as a result, the price made a good move up. Now we met the first resistance zone, which we marked out on 29th of June, the price increased by +28% since the moment of the recommendation post.
Besides the resistance of the upper edge of the triangle on 1 day timeframe in which we are now, the market meets the strong resistance of a long-term trend that started at the beginning of October 2017. After the growth the price has made, there can be not enough strength to go higher, but in order to consider the further positive scenario we need to break the current resistance (near Fib 0.382 on 1 day timeframe of the last downtrend wave) which can give us a chance to touch the zone near 8200 (Fib 0.618 of the last downtrend wave).
If to look at the higher timeframe of 3 days, based on the Fibonacci sequence (which clearly emphasize the important trading levels), we can see that now are within Fib 0.786 and Fib 0.618 of all the price zones from all the Bitcoin history. Globally we are still following the downtrend and the main magnet for the price movement serves 4800 level, which corresponds to Fib 0.786 (this level is the main target during the correction pullback of any asset. If the price goes above 8200 (Fib 0.618) we will get a possibility to cancel the downtrend scenario.
Also, taking into consideration the fractal Bitcoin price development, we can consolidate in 4800-8200 zone for a long time, forming the long side movement bouncing from the edges of this corridor.
Now there is a possibility not to break the resistance and pull back to 6800 zone.