BITCOIN - One of The Possible Scenarios!
Updated
The Bitcoin price has pushed the new Lower Low (LL) a bit lower into my mentioned (last idea post) support area at $7,500. The bounce has occurred, as slightly expected, and here we can start to see some interesting similarities compared with the movements on the top.
Usually, I don't like to search those similarities but currently, they start to match perfectly with other technical analysis criteria.
The drop which was happened from $9,000 to my first mentioned support area at $7,500 has started to match with the price action which has occurred after the trendline breakout!
On the left chart, you can see that blue price shadows, copy/paste to the right chart and you see that after the breakout from the trendline those moves have been extremely similar!
Here comes the conclusion which is REALLY subjective. I still wait for that major support area which stays between $6,500-$7,000 but I like to show a possible roadmap how it may go into this area.
Currently, the $7,500 has held the price nicely, altcoins are on the pullback which also will be a slight indication that the market goes higher. Now the similarity, the similarity projection shows us that the BTC price can climb into a strong area, around $8,200. There are also Fibonacci Golden ratio 62% and descending channel upper trendline. So, pretty nice crossing area and strong resistance, it can be our new Lower High (LH) and the blue "similar movement" has pointed also exactly into this area!
As said in my previous post, my bias is bearish because of the Lower Low which has been a rare case since February 2019 and that's why I think that this new Lower High seams to be in the right place.
Now the most important criterion, the blue price projection is pointed exactly into my major support area at $6,500-$7,000. To remind you of those other criteria:
The major support area $6,500-$7,000
Yes, a pretty wide range but it is what it is, here are the criteria:
1. Fibonacci retracement 50% ~$7,000
2. Fibonacci retracement 62% ~$6,540, both are pulled from 25. April low to the 30. May high.
3. Fibonacci retracement 38% ~$6,820, pulled from 15. Dec. 2018 low (from the bottom) to the 30. May high.
4. The round number $7,000 and even $6,500
5. Daily EMA 50 should act as a support level.
6. The known strong price level at $6,700
7. Previously worked support and the area where may have a lot of buyers.
8. Chart pattern Rising Wedge breakout target is pointed exactly into the lower blue box.
9. Historically, some Monthly lows and highs have been in this area.
Now, there is also:
10. Similarity projection (similar price action) between the drop from $9,000 and drop after the breakout from the trendline (breakout from the bearish chart pattern Rising Wedge)
11. Descending channel bottom trendline, which should act as a support
12. ABC Equal Waves C point.
SUMMARY: It may drop sooner than expected because the $8,000 can be a psychological level but I just had to share it with You, actually it looks awesome :D
Feel free to support my effort by hitting the "LIKE", it is my only fee from You!
Best regards!
Previous analysis:
Usually, I don't like to search those similarities but currently, they start to match perfectly with other technical analysis criteria.
The drop which was happened from $9,000 to my first mentioned support area at $7,500 has started to match with the price action which has occurred after the trendline breakout!
On the left chart, you can see that blue price shadows, copy/paste to the right chart and you see that after the breakout from the trendline those moves have been extremely similar!
Here comes the conclusion which is REALLY subjective. I still wait for that major support area which stays between $6,500-$7,000 but I like to show a possible roadmap how it may go into this area.
Currently, the $7,500 has held the price nicely, altcoins are on the pullback which also will be a slight indication that the market goes higher. Now the similarity, the similarity projection shows us that the BTC price can climb into a strong area, around $8,200. There are also Fibonacci Golden ratio 62% and descending channel upper trendline. So, pretty nice crossing area and strong resistance, it can be our new Lower High (LH) and the blue "similar movement" has pointed also exactly into this area!
As said in my previous post, my bias is bearish because of the Lower Low which has been a rare case since February 2019 and that's why I think that this new Lower High seams to be in the right place.
Now the most important criterion, the blue price projection is pointed exactly into my major support area at $6,500-$7,000. To remind you of those other criteria:
The major support area $6,500-$7,000
Yes, a pretty wide range but it is what it is, here are the criteria:
1. Fibonacci retracement 50% ~$7,000
2. Fibonacci retracement 62% ~$6,540, both are pulled from 25. April low to the 30. May high.
3. Fibonacci retracement 38% ~$6,820, pulled from 15. Dec. 2018 low (from the bottom) to the 30. May high.
4. The round number $7,000 and even $6,500
5. Daily EMA 50 should act as a support level.
6. The known strong price level at $6,700
7. Previously worked support and the area where may have a lot of buyers.
8. Chart pattern Rising Wedge breakout target is pointed exactly into the lower blue box.
9. Historically, some Monthly lows and highs have been in this area.
Now, there is also:
10. Similarity projection (similar price action) between the drop from $9,000 and drop after the breakout from the trendline (breakout from the bearish chart pattern Rising Wedge)
11. Descending channel bottom trendline, which should act as a support
12. ABC Equal Waves C point.
SUMMARY: It may drop sooner than expected because the $8,000 can be a psychological level but I just had to share it with You, actually it looks awesome :D
Feel free to support my effort by hitting the "LIKE", it is my only fee from You!
Best regards!
Previous analysis:
Note
At the moment, everything goes as planned - without manipulations, without weird movements. The price has slowly increased and the current wave target should be around $8,000-$8,200.Note
The price has started to climb upwards from the $7,500. The climb has printed short-term higher lows but it can't beat the resistance level which stays around $7,875. This means that we have an ascending triangle. This is a triangle and it has two breakout possibilities, ascending means that the higher success rate would be a breakout upwards.
Currently, we are on the triangle bottom trendline and if it breaks then probably we could see a little downwards movement.
If this bottom trendline holds the price then a breakout upwards would be another confirmation that it can climb into our major resistance area $8,000-$8,200.
Definitely watch out if the price starts to fall outside the triangle blue area!
Note
Currently, the price has started to approach that new Lower High area and here is more about that,NEW IDEA POST:
All the best!
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