BITCOIN | New Lower High (LH)!?
Updated
Hi,
After the drop from $12,000 to $9,500, the Bitcoin price and altcoins have made some short-term gains. The bounce came from the trendline which printed a new Higher Low. In general, the price has started to move between two trendlines. From the top, we have nice and clean Lower Highs, from the bottom, as said, nice and clean Higher Lows. It all indicates that we are approaching the tip of the triangle which is one month away. After the breakout from the triangle, we can set a mid-term direction but before that let's try to catch some short-term trading opportunities.
At the moment it is somewhat risky because we are in the middle of the pattern and trading inside of it can make trades more vulnerable. We have higher lows and lower highs which also makes it a bit more complicated but still, I would like to point out a resistance area which can play a significant role in the near future. It stays between the black upper trendline and $10,950 (marked as blue). Inside of it is a bit darker blue price zone which is the strongest. The dark blue area is the area where some great reversal price action criteria matching each other but overall you should wait for something from the entire blue area. What? You can find it out later! :)
To be said, despite those higher lows, I'm more bearish and as said in my previous post that my eyes are pointed to $8,000. If altcoins starting to wake up then my bias can change but at the moment, considering those drops versus increases between from the peak of this year to today (drops are much sharper), I'm slightly more bearish.
So, in MY mind, the current trade possibility is into my trend direction, which is already great, and the dark blue area consists of:
1. Previously worked resistance between 6-12 August (orange line) should start to act as a resistance.
2. Fibonacci retracement 62%, pulled from the 6. August high to 15. August low. BTC price has reacted multiple times after it has touched 62% so, the chances are in our favor.
3. Fibonacci Extension 161,8%. Pulled from 15. August low to 16. August high.
4. AB=CD
5. Channel upper trendline projection, a possible Bear Flag.
6. The round number $11,000
7. Strong price zone, the gray area just above the 11k. As I have said previously, 11k is visually the strongest around the current levels. It has printed multiple support and resistance levels.
8. "A sloppy" trendline, thin black dotted line from 2019 high and the second touch 10. July high. We know already the strong area and sometimes this historically 'clean' trendlines can add a bit more strongness into our marked areas. The third touch was full of fakeouts but in general, I consider it as a side criterion.
The area is pretty wide because you should wait for a bearish candlestick formation to get full confirmation from it. Almost all rejections have printed some bearish/bullish candlestick patterns after they have taken a direction to our wished direction:
...and here comes the ninth...
9. To trigger the trade order from the marked blue area, wait for a bearish candlestick pattern formation on the 4H timeframe!!!
Do your own research!!
Best regards,
Vaido
After the drop from $12,000 to $9,500, the Bitcoin price and altcoins have made some short-term gains. The bounce came from the trendline which printed a new Higher Low. In general, the price has started to move between two trendlines. From the top, we have nice and clean Lower Highs, from the bottom, as said, nice and clean Higher Lows. It all indicates that we are approaching the tip of the triangle which is one month away. After the breakout from the triangle, we can set a mid-term direction but before that let's try to catch some short-term trading opportunities.
At the moment it is somewhat risky because we are in the middle of the pattern and trading inside of it can make trades more vulnerable. We have higher lows and lower highs which also makes it a bit more complicated but still, I would like to point out a resistance area which can play a significant role in the near future. It stays between the black upper trendline and $10,950 (marked as blue). Inside of it is a bit darker blue price zone which is the strongest. The dark blue area is the area where some great reversal price action criteria matching each other but overall you should wait for something from the entire blue area. What? You can find it out later! :)
To be said, despite those higher lows, I'm more bearish and as said in my previous post that my eyes are pointed to $8,000. If altcoins starting to wake up then my bias can change but at the moment, considering those drops versus increases between from the peak of this year to today (drops are much sharper), I'm slightly more bearish.
So, in MY mind, the current trade possibility is into my trend direction, which is already great, and the dark blue area consists of:
1. Previously worked resistance between 6-12 August (orange line) should start to act as a resistance.
2. Fibonacci retracement 62%, pulled from the 6. August high to 15. August low. BTC price has reacted multiple times after it has touched 62% so, the chances are in our favor.
3. Fibonacci Extension 161,8%. Pulled from 15. August low to 16. August high.
4. AB=CD
5. Channel upper trendline projection, a possible Bear Flag.
6. The round number $11,000
7. Strong price zone, the gray area just above the 11k. As I have said previously, 11k is visually the strongest around the current levels. It has printed multiple support and resistance levels.
8. "A sloppy" trendline, thin black dotted line from 2019 high and the second touch 10. July high. We know already the strong area and sometimes this historically 'clean' trendlines can add a bit more strongness into our marked areas. The third touch was full of fakeouts but in general, I consider it as a side criterion.
The area is pretty wide because you should wait for a bearish candlestick formation to get full confirmation from it. Almost all rejections have printed some bearish/bullish candlestick patterns after they have taken a direction to our wished direction:
...and here comes the ninth...
9. To trigger the trade order from the marked blue area, wait for a bearish candlestick pattern formation on the 4H timeframe!!!
Do your own research!!
Best regards,
Vaido
Note
Strong resistance zone is discovered. To get a confirmed bearish signal we should get a mentioned bearish candlestick patter inside the blue area and at least on the 4H timeframe.Here is my list, strongest to weakest:
- Evening Star
- Bearish Engulfing
- Bearish Railway Tracks
- Shooting Star
- Spinning Top
- Gravestone Doji
- Doji
Note
Sorry followers but I’m on my vacation, again! Back in action 28 August!Price falls, as expected, and you actually should know where my eyes are pointed!
Cheers!!
Note
New BTC Analysis:
Regards!
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