Today we are going to look carefully at the price action on the 4 hours chart which can validate or invalidate further upside as the BTC is facing an important resistance area to break on a DAILY BASIS (42’500),last closing being just below this level @ 42’235.

So, this 4 hours time frame is showing 2 important things :

1) a double top in progress with its trigger level @ 41’554 (also H1 clouds support area )- breakout confirmed on H4 closing basis would target 40’703 – if breakout occured watch and monitor pullback attempt closely !
2) RSI divergence

On the upside, a successful recovery above the Tenkan-Sen (41’979) would neutralise, on this H4 time horizon the ongoing downside risk and would reopen the door for higher levels.

On the downside, the former downtrend line resistance, currently around the 41’000 area is the first support, ahead of 40’703 (DT target) and the 50% Fib ret @ 40’557 (37’568-42’405)

A DAILY CLOSING LEVEL below the top of the clouds @ 40’800 would be seen as a negative signal for the upcoming trading session )s) !

On a weekly basis, the main support level remains the Tenkan-Sen @ 39’400 ahead of the weekly clouds support bottom @ 37’637; and on the upside, in this time frame watch the top of the clouds @ 45’433 which also coincides with the top of an ongoing weekly downtrend channel .

Have nice Sunday.

IRONMAN8848. & Jean-Pierre Burki