BITCOIN - Slight Short-Term Reversal Signs?!
Updated
The last Weekly candle close gave us a bearish candlestick pattern called Dragonfly Doji. The mentioned candlestick pattern itself is not the greatest bearish candlestick pattern but if the price starts falling or it makes breakout from certain patterns or levels then it can be a good further indication.
Considering the last bounce from $8,300 then my last idea post was pretty accurate. The bounce came from the mentioned crossing area and bulls pushed the price to the $8,800. Now, after the weekend slow price action, the price has started to make movements with higher volume inside the candles and the first movement has occurred downwards. Currently, the last 4H candle got a close just below the round number $8,500, plus the price is back below the counter trendline. Actually, there are some sings more so, let's start to count and discuss those.
1. The blue counter trendline is pulled on the 1H chart and I didn't include that fakeout which has occurred on Thursday. I don't want to dig into the tiny details but the trendline is accurate because of the 2. June breakout candle above the trendline. It was full of volume and it showed that the counter trendline was working pretty strongly and bulls needed a lot of power to push the price above of it. The least 4H candle gave us a break below the counter trendline which had to work as a support level.
2. The last 4H candle close gave a break below the round number $8,500 which had to work as a support level or as a psychological level.
3. The thin dotted red trendline pulled from the bodies, first touch 17. May and the second touch 23. May. Third touch on 31. May was a little bit sloppy but still, the bounce came from this area but currently the last 4H candle has closed below of it and it could be a slight bearish sign.
4. There was also a pretty solid price level at $8,575. It has worked as a support level and at the weekend it worked as a resistance level. Currently, the last 4H candle closed below that price and we can take this also as a slight bearish sign.
5. The price has fallen and we can take the last weekend high (around $8,800) as a new Lower High (LH). This can be a pretty important indication/sign especially if we consider that the last 4H candle close took down several strong price levels and before that it made LH.
At the moment, we have a lot of small signs which will be indications for a further price decrease. If we collect them more and more then those small signs can give us a stronger bearish signal.
Next point is based from the next confirmation areas which will add strongness into my bearish view.
6*. 4H candle close below the $8,400. If the 4H candle gets a close below the mentioned level then it has cracked two more levels/criteria:
- The red trendline pulled from the wicks (first touch 17. May and the second touch 23. May.) Currently, it has held nicely but if the 4H candle gets a close below of it then it would be the first time and we can take this as a breakout. The BTC price is not so "hot" anymore and the short-term momentum trend could be over, the LH also confirms it!
- The strong price level at $8,426
This close will guide the price into the crucial support area at $8,000 - $8,115. There are the psychological number and the previously worked very strong price level ($8,115), it has worked multiple times as a strong resistance level and one time it has acted as a support.
SUMMARY: Considering those bearish signs, considering that the last Weekly candle was a bearish candlestick pattern "Dragonfly Doji" then watch out if the $8,400 gets cracked. The break below of it will trigger those small bearish signs and the price can fall into the major support level. Major support levels stay around the $8,000 and a Daily candle close below the 8k can easily be as a panic button but more about that level when the price has started to approach it. Can't give a bullish signal from current level because of the low count of criteria and because of those bearish signs but the $8,000 level may give us some opportunities for short-term buy trades. Currently, wait for confirmation - break below $8,400, it is the only higher percent trading opportunity from current levels (in my opinion).
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice day,
Cheers!
Previous analysis:
Considering the last bounce from $8,300 then my last idea post was pretty accurate. The bounce came from the mentioned crossing area and bulls pushed the price to the $8,800. Now, after the weekend slow price action, the price has started to make movements with higher volume inside the candles and the first movement has occurred downwards. Currently, the last 4H candle got a close just below the round number $8,500, plus the price is back below the counter trendline. Actually, there are some sings more so, let's start to count and discuss those.
1. The blue counter trendline is pulled on the 1H chart and I didn't include that fakeout which has occurred on Thursday. I don't want to dig into the tiny details but the trendline is accurate because of the 2. June breakout candle above the trendline. It was full of volume and it showed that the counter trendline was working pretty strongly and bulls needed a lot of power to push the price above of it. The least 4H candle gave us a break below the counter trendline which had to work as a support level.
2. The last 4H candle close gave a break below the round number $8,500 which had to work as a support level or as a psychological level.
3. The thin dotted red trendline pulled from the bodies, first touch 17. May and the second touch 23. May. Third touch on 31. May was a little bit sloppy but still, the bounce came from this area but currently the last 4H candle has closed below of it and it could be a slight bearish sign.
4. There was also a pretty solid price level at $8,575. It has worked as a support level and at the weekend it worked as a resistance level. Currently, the last 4H candle closed below that price and we can take this also as a slight bearish sign.
5. The price has fallen and we can take the last weekend high (around $8,800) as a new Lower High (LH). This can be a pretty important indication/sign especially if we consider that the last 4H candle close took down several strong price levels and before that it made LH.
At the moment, we have a lot of small signs which will be indications for a further price decrease. If we collect them more and more then those small signs can give us a stronger bearish signal.
Next point is based from the next confirmation areas which will add strongness into my bearish view.
6*. 4H candle close below the $8,400. If the 4H candle gets a close below the mentioned level then it has cracked two more levels/criteria:
- The red trendline pulled from the wicks (first touch 17. May and the second touch 23. May.) Currently, it has held nicely but if the 4H candle gets a close below of it then it would be the first time and we can take this as a breakout. The BTC price is not so "hot" anymore and the short-term momentum trend could be over, the LH also confirms it!
- The strong price level at $8,426
This close will guide the price into the crucial support area at $8,000 - $8,115. There are the psychological number and the previously worked very strong price level ($8,115), it has worked multiple times as a strong resistance level and one time it has acted as a support.
SUMMARY: Considering those bearish signs, considering that the last Weekly candle was a bearish candlestick pattern "Dragonfly Doji" then watch out if the $8,400 gets cracked. The break below of it will trigger those small bearish signs and the price can fall into the major support level. Major support levels stay around the $8,000 and a Daily candle close below the 8k can easily be as a panic button but more about that level when the price has started to approach it. Can't give a bullish signal from current level because of the low count of criteria and because of those bearish signs but the $8,000 level may give us some opportunities for short-term buy trades. Currently, wait for confirmation - break below $8,400, it is the only higher percent trading opportunity from current levels (in my opinion).
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice day,
Cheers!
Previous analysis:
Note
Alert! Daily lowest 1H candle close has occurred and the price has made some breakouts:On the 15 min. chart the price has broken out from the Bear Flag:
On the 1H chart, the price has closed below the red trendline:
Those are not the best breakout confirmation timeframes but still was worth to mention it!
Note
New BTC analysis: Support areas below the current price!
Feel free to support my effort by hitting the "LIKE"
Have a great day!
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