Justin W. at 11:46 AM
Here is the weekly BitMEX chart. Looking at the higher time frame structures makes analyzing Bitcoin's path very clear.
Breaking local resistance at 4096 with a higher weekly close, would present a shift in market structure where all dips represent buying opportunities. While most eyes will be focused on the Critical Resistance level at 6150-5800, our eyes should first be on 4700. This was an area that Bitcon's price reacted very well to, previously as resistance, then as the breakout zone for the rally of 2018. Although this area did not act as support on the way back down, all that means is that it has now become a level of resistance yet again.
We will be reducing risk and taking profit (partially) when are are on the way back up with longs. Now in general, on the first pass through, the area of 6150-5800 will be selling opportunities. Anyone who bought the yearly floor at 6000 and is still holding would take advantage of that opportunity to sell at break even. From a purely technical perspective, it is also the no-brainer zone to short from.
Should this level get taken out convincingly and then re-claimed, fresh market participants would I expect, swarm back into Bitcoin. All the trapped shorts and underwater shorts covering when price re-tests 6k from the upside would add fuel to the rally fire, which I would expect, would be quite violent.