What's up everyone, I'd like to provide some technical thought amongst all of the madness in the crypto world right now.
Bitcoin is currently forming a bullish deep crab pattern on the 1h chart, providing a trading opportunity with a 1:2.5 risk to reward.
The measurements for a valid deep crab are detailed below.
B: 0.886
C: 0.382 - 0.886
D: 2.24 - 3.618
X to D: 1.618
I'll be expecting price to stall out once it reaches the D point, this forms on a key level of support!
As you can see from the daily chart below the pattern completes slightly above the daily support trendline.
This is sufficient reasoning for a reversal to take place and seems likely considering Bitcoin has already corrected by 50% since the all time high.
Keep this setup on your watch list :)
Bitcoin is currently forming a bullish deep crab pattern on the 1h chart, providing a trading opportunity with a 1:2.5 risk to reward.
The measurements for a valid deep crab are detailed below.
B: 0.886
C: 0.382 - 0.886
D: 2.24 - 3.618
X to D: 1.618
I'll be expecting price to stall out once it reaches the D point, this forms on a key level of support!
As you can see from the daily chart below the pattern completes slightly above the daily support trendline.
This is sufficient reasoning for a reversal to take place and seems likely considering Bitcoin has already corrected by 50% since the all time high.
Keep this setup on your watch list :)
Note
Price is quickly approaching $9,000 to complete the pattern, pay close attention to price formation and volume.Note
I suspect price may return to the support zone at $9,000 as shown below.I would pay close attention to the area in which price is trading in right now and the resistance trendline.
If there are any indications of a decline I will be sure to update my analysis.
Note
We're now approaching the 9k level to re-test the PRZ of the bullish deep crab.Although, in the Six Figure Capital Telegram channel Kyle pointed out that price has also formed a valid bullish cypher so our options are open.
Keep an eye on the setup below, the viable option seems to be a second test of support... However, pay attention to both for a reversal.
Note
Here is my current view on Bitcoin, we are looking at a type II re-test.Pay attention to the reversal level at 9k.
📈 Master the Art and Science of Trading: sixfigurecapital.com
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📈 Master the Art and Science of Trading: sixfigurecapital.com
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.