BITCOIN - The Trendline & The Market Are Tired!?
After that last week dump from the $5,500 to $5,000, the BTC price has moved completely sideways. Just a few ups and downs but in general in a very tiny range. Luckily, this sideways movement has occurred in an important area and we can make some conclusions about it.
Why this is an important area? Because of the trendline!
The trendline has worked as a strong support line and the rejections from it have been with pretty high volume inside the candles, but not right now. Right now the Bitcoin price is really on the edge because the sideways movement has been exactly on the trendline. Usually, when there is a sloppy and a bit sideways movement on the strong area then it lowers price reversal trade success rate - at the moment, it lowers the chances that the price may take a direction to the higher prices.
Currently, the BTC price has been in this area more than three days and every hour more will be a sign that the price can make a downwards breakthrough from the trendline. If the breakthrough below the trendline has occurred then be ready for a bigger correction and the first target would be around $4,500-$4,600, several price action indications are pointed exactly into this area (Fibo extensions, Equale waves from the top, different chart pattern targets, etc.).
If the trendlines get cracked then we can not forget the major support around this area, I have mentioned this on my previous updates. I have marked this as a red dotted line and this is the round number $5,000. If this collapse, then we will see a short-term collapse also on the market. Remember, firstly, the trendline (which is actually a major counter trendline on the current levels and the trades which has occurred after the counter trendline breaks have been usually very good) and secondly, the round number $5,000. The ideal scenario would be - they both get cracked with a same 4H candle and 4H candle has to close below the $5,000 which confirms a movement downwards!!
The second important area on the chart:
My followers already know this level and this level is located slightly below the round number $5,500 - marked as a blue box! If the price is reached into this price level, every time the volume has shown an incredible increase (Strong price level), and now there is also a Fibo golden ratio 62% from the last wave which also should act as a strong resistance.
We have multiple signs that the market is getting tired. We have short-term lower lows, the important trendline does not work as it should be, soon we will see an EMA death cross between 50 and 200 on the 4H chart, we have some fundamental crap around the crypto (last week panic), etc. We might see a tiny bounce upwards to the mentioned area, dead cat bounce, a last short squeeze or whatever you wanna call it but in general, this area should work as a strong resistance which stays into the blue box. This area/box is a pretty wide, so, that's why wait for a bearish candlestick formation in this box to get an extra confirmation. As it was before the drop from $5,500 to $5,000, before that I mentioned bearish Engulfing and look what happened next. So, if I see it, I will make an update, yes, firstly the price has to reach into this area ;) Probably, the drop from there could be a bit smoother then the first target would be $5,000!
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice week,
Cheers!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Why this is an important area? Because of the trendline!
The trendline has worked as a strong support line and the rejections from it have been with pretty high volume inside the candles, but not right now. Right now the Bitcoin price is really on the edge because the sideways movement has been exactly on the trendline. Usually, when there is a sloppy and a bit sideways movement on the strong area then it lowers price reversal trade success rate - at the moment, it lowers the chances that the price may take a direction to the higher prices.
Currently, the BTC price has been in this area more than three days and every hour more will be a sign that the price can make a downwards breakthrough from the trendline. If the breakthrough below the trendline has occurred then be ready for a bigger correction and the first target would be around $4,500-$4,600, several price action indications are pointed exactly into this area (Fibo extensions, Equale waves from the top, different chart pattern targets, etc.).
If the trendlines get cracked then we can not forget the major support around this area, I have mentioned this on my previous updates. I have marked this as a red dotted line and this is the round number $5,000. If this collapse, then we will see a short-term collapse also on the market. Remember, firstly, the trendline (which is actually a major counter trendline on the current levels and the trades which has occurred after the counter trendline breaks have been usually very good) and secondly, the round number $5,000. The ideal scenario would be - they both get cracked with a same 4H candle and 4H candle has to close below the $5,000 which confirms a movement downwards!!
The second important area on the chart:
My followers already know this level and this level is located slightly below the round number $5,500 - marked as a blue box! If the price is reached into this price level, every time the volume has shown an incredible increase (Strong price level), and now there is also a Fibo golden ratio 62% from the last wave which also should act as a strong resistance.
We have multiple signs that the market is getting tired. We have short-term lower lows, the important trendline does not work as it should be, soon we will see an EMA death cross between 50 and 200 on the 4H chart, we have some fundamental crap around the crypto (last week panic), etc. We might see a tiny bounce upwards to the mentioned area, dead cat bounce, a last short squeeze or whatever you wanna call it but in general, this area should work as a strong resistance which stays into the blue box. This area/box is a pretty wide, so, that's why wait for a bearish candlestick formation in this box to get an extra confirmation. As it was before the drop from $5,500 to $5,000, before that I mentioned bearish Engulfing and look what happened next. So, if I see it, I will make an update, yes, firstly the price has to reach into this area ;) Probably, the drop from there could be a bit smoother then the first target would be $5,000!
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice week,
Cheers!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Kommentera:
The new analysis - Part 2.
Kommentera:
The new analysis - Part 2.
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