BitcoinLong
BITCOIN - Bullish Candlesticks Party - Do They Start The Rally?
Updated
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On Friday I said: "If we don't find this power soon enough then we might stay below those resistances ( $6,445, $6,460) because at the weekend we have low volatility!"
The slow-motion mode is still on the market, we did not find that power soon enough to push the price above the current major levels and almost entire weekend we traded below the named levels - until Sunday...
On Sunday we got a pretty important move from strong support area, the bounce came from $6,360 and after it formed us several bullish price action patterns. Firstly, we had two weeks ago a very strong bullish "Dragonfly Doji" weekly candlestick pattern (remember that little bear trap and bounce upwards from $6,250), this candlestick didn't get that full momentum what it would have deserved BUT it still may come because of the massively low volatility and currently, everything happens in the postpone mode.
The Sunday's move - from the major counter trendline (pulled from 24. June) and from the perfect FIB level 62% - pushed the price above the first strong resistance area at $6,445 and the daily candle close gave a bullish candlestick pattern "Hammer".
Last time when we got a bullish candlestick pattern on the major counter trendline was 31. Oct. and we ended up with nice 'rally' upwards. Let's see what we can get from yesterday's Hammer.
To climb upwards we have several bullish price action criteria:
1. Strong rejection from the counter trendline
2. Strong rejection from the perfect FIB level 62%
3. Bullish Hammer candlestick pattern formed after the bounce
4. Candle close above the first strong resistance area - $6,445
5. We have several bullish candlestick patterns on the mediocre timeframes
* 12H - bullish "Engulfing"
* 8H - bullish "Railroad Tracks"
* 6H - "Hammer" / "Morning Star"
* 4H - A bit sloppy but still "Engulfing"
So, pretty good indications from the different timeframes. Definitely, I'm still bullish before we have not seen any short-term lower lows and we don't have any candle close below the major counter trendline.
Let's jump into the current price action:
As You see on the chart we got a perfect bounce from $6,360 and this guides us upwards to the triangle upper trendline which has act historically multiple times as a strong resistance. This upper trendline is very subjective because I tried to draw this from as many wicks as I can (ignoring some of the trendline drawing rules because of the Tether crash). The price bounced back from the upper trendline and on the 4H chart we got a bearish candlestick pattern called "Shooting Star" - yes, today is a candlestick pattern day ;) - and now we are on the tiny area between the $6,445 $6,460.
We might see a throwback to the $6,400-$6,410. There is a possible short-term down-trendline retest area which is also short-term counter trendline (If we count that trend upwards which started at 31 Oct. after bullish Engulfing). So, we have an important break above the trendline and now we could make a retest + there is a possibility to 'make' the "Inverted Head and Shoulders" pattern if we find a support from $6,400-$6,410.
Summary: I start to turn into the bearish bias when I see that the price starts to fall downwards from the triangle (from the grey area). Currently, there are just too many short-term bullish signs. As usual, I start to make updates to hold You on the 'track' and help You as much as I can!
Bullish confirmations:
* A candle close above the $6,445, $6,460, above the triangle and above the round number $6,500
Bearish confirmation:
*Close below the $6,385 and below the triangle!
Hopefully, this breakdown helps You out a little bit to confirm Your own analysis!
Please, don't forget to LIKE, COMMENT & FOLLOW!
Thank You for your support, I really really appreciate it!
Have a nice week!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
On Friday I said: "If we don't find this power soon enough then we might stay below those resistances ( $6,445, $6,460) because at the weekend we have low volatility!"
The slow-motion mode is still on the market, we did not find that power soon enough to push the price above the current major levels and almost entire weekend we traded below the named levels - until Sunday...
On Sunday we got a pretty important move from strong support area, the bounce came from $6,360 and after it formed us several bullish price action patterns. Firstly, we had two weeks ago a very strong bullish "Dragonfly Doji" weekly candlestick pattern (remember that little bear trap and bounce upwards from $6,250), this candlestick didn't get that full momentum what it would have deserved BUT it still may come because of the massively low volatility and currently, everything happens in the postpone mode.
The Sunday's move - from the major counter trendline (pulled from 24. June) and from the perfect FIB level 62% - pushed the price above the first strong resistance area at $6,445 and the daily candle close gave a bullish candlestick pattern "Hammer".
Last time when we got a bullish candlestick pattern on the major counter trendline was 31. Oct. and we ended up with nice 'rally' upwards. Let's see what we can get from yesterday's Hammer.
To climb upwards we have several bullish price action criteria:
1. Strong rejection from the counter trendline
2. Strong rejection from the perfect FIB level 62%
3. Bullish Hammer candlestick pattern formed after the bounce
4. Candle close above the first strong resistance area - $6,445
5. We have several bullish candlestick patterns on the mediocre timeframes
* 12H - bullish "Engulfing"
* 8H - bullish "Railroad Tracks"
* 6H - "Hammer" / "Morning Star"
* 4H - A bit sloppy but still "Engulfing"
So, pretty good indications from the different timeframes. Definitely, I'm still bullish before we have not seen any short-term lower lows and we don't have any candle close below the major counter trendline.
Let's jump into the current price action:
As You see on the chart we got a perfect bounce from $6,360 and this guides us upwards to the triangle upper trendline which has act historically multiple times as a strong resistance. This upper trendline is very subjective because I tried to draw this from as many wicks as I can (ignoring some of the trendline drawing rules because of the Tether crash). The price bounced back from the upper trendline and on the 4H chart we got a bearish candlestick pattern called "Shooting Star" - yes, today is a candlestick pattern day ;) - and now we are on the tiny area between the $6,445 $6,460.
We might see a throwback to the $6,400-$6,410. There is a possible short-term down-trendline retest area which is also short-term counter trendline (If we count that trend upwards which started at 31 Oct. after bullish Engulfing). So, we have an important break above the trendline and now we could make a retest + there is a possibility to 'make' the "Inverted Head and Shoulders" pattern if we find a support from $6,400-$6,410.
Summary: I start to turn into the bearish bias when I see that the price starts to fall downwards from the triangle (from the grey area). Currently, there are just too many short-term bullish signs. As usual, I start to make updates to hold You on the 'track' and help You as much as I can!
Bullish confirmations:
* A candle close above the $6,445, $6,460, above the triangle and above the round number $6,500
Bearish confirmation:
*Close below the $6,385 and below the triangle!
Hopefully, this breakdown helps You out a little bit to confirm Your own analysis!
Please, don't forget to LIKE, COMMENT & FOLLOW!
Thank You for your support, I really really appreciate it!
Have a nice week!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Note
Here is the possible "Inverted Head and Shoulders" chart pattern.The neckline is the well-known resistance level $6,460 and to be correct right shoulder than it has to get a bounce from $6,400-$6,420!
Note
Learn some candlestick pattern from my educational idea post:
Hopefully, it helps You out to get a better understanding of candlestick patterns!
Note
We might see a break above the strong resistance area - $6,460.Currently, altcoins make a climbs into the green, which is a good sign and looks like the volume slowly growing.
Bitcoin price starts to fight with the resistance and with the EMA 200 on the 1H chart.
If we get a candle close above the $6,460 and above the 200 EMA on the 1H then it is not a full confirmation! We have to search this confirmation at least from 4H timeframe BUT if the altcoins start to make higher climbs then it would be a good sign also on the 1H chart! Let's see, more than 2h to go to the four-hour candle close but maybe we can catch something earlier!
NB: THOSE ARE SIGNS, NOT CONFIRMATIONS.
Note
Hey-hey!The inverted head and shoulders pattern has happened. Exactly as it was on the 'table' and now we have several bullish signs which will confirm that further breakout above the triangle upper trendline:
1. Bullish chart pattern Inverted Head and shoulders
2. 1H Engulfing candlestick from the right shoulder
3. EMA 8 & 21 golden cross
4. The price is above the $6,445
Technically a pretty good setup, the only obstacle is the volume. We need pretty heavy volume if we want to see higher prices, I mean above the $6,500. Let's see, definitely today we see some movement, is it smaller or bigger - soon we can find it out!
Note
The market starts to make a move upwards! So, You can slowly start to invest where You want ;)Note
...or wait for a close above the triangle!Note
NEW TRADING IDEA:
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Thank You very much!
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