BITCOIN - A Possible Short-Term Bounce, Overall, Pretty Ugly!
Updated
Hey, just a quick update to fresh some levels on the chart!
If You look my older post then there I put on the update section that this green box on the chart between $4,929-$5,102 should be the bounce area for short-term traders. This is the area where we were more than a year ago and now we approach the same levels. This green area is actually the "clean area". Price have touched those price levels which is on the green box only once but overall the market doesn't "allow" this so, we could fill up this area and the bounce may come around 5k!
From the technical perspective, we trade on the sloppy channel downwards and we could say that this may be the-next-leg-down Bear Flag but we have also pretty significant reversal indications on the current above, remember(!), not confirmations but indications!
Small bounce criteria:
1. Fibonacci extension - from last bigger LL (Lower low) at 28. June 2018 and after that next LH (lower high) 25. July - 127%
2. Fibonacci extension 127% from recent highs and lows after the drop
3. Different timeframes RSI divergence
4. This green box should act overall as a strong support level
5. If we reach as low as 5k than the 5k itself should act as a support level - round number/psychological level
6. "Virtual Channel" bottom trendline (black)should act as a support
Now the bearish sign:
1. Massive down pressure
2. Incredible bearish candle consistency on the 4H chart
3. Altcoins take serious hits which all indicate that the money flows away from the coins
4. A candle close below the 5k and below the $4,929 should mean that we go into the deeper levels but I just don't want to predict how low it could go.
5. Possible bearish continuation chart pattern "Bear Flag"
Actually, this all looks pretty ugly to me IF we don't get a bounce from the green area, very ugly!
Just watch the price action who wants to mess with the market (bullish chart patterns breakouts from the lower timeframes on the green area, bullish candlestick patterns and etc.)and who looks short-term entries but my recommendation is to stay away from the markets and to not mess with it!
NB: Here You can find only SHORT-TERM bias!
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 day!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
If You look my older post then there I put on the update section that this green box on the chart between $4,929-$5,102 should be the bounce area for short-term traders. This is the area where we were more than a year ago and now we approach the same levels. This green area is actually the "clean area". Price have touched those price levels which is on the green box only once but overall the market doesn't "allow" this so, we could fill up this area and the bounce may come around 5k!
From the technical perspective, we trade on the sloppy channel downwards and we could say that this may be the-next-leg-down Bear Flag but we have also pretty significant reversal indications on the current above, remember(!), not confirmations but indications!
Small bounce criteria:
1. Fibonacci extension - from last bigger LL (Lower low) at 28. June 2018 and after that next LH (lower high) 25. July - 127%
2. Fibonacci extension 127% from recent highs and lows after the drop
3. Different timeframes RSI divergence
4. This green box should act overall as a strong support level
5. If we reach as low as 5k than the 5k itself should act as a support level - round number/psychological level
6. "Virtual Channel" bottom trendline (black)should act as a support
Now the bearish sign:
1. Massive down pressure
2. Incredible bearish candle consistency on the 4H chart
3. Altcoins take serious hits which all indicate that the money flows away from the coins
4. A candle close below the 5k and below the $4,929 should mean that we go into the deeper levels but I just don't want to predict how low it could go.
5. Possible bearish continuation chart pattern "Bear Flag"
Actually, this all looks pretty ugly to me IF we don't get a bounce from the green area, very ugly!
Just watch the price action who wants to mess with the market (bullish chart patterns breakouts from the lower timeframes on the green area, bullish candlestick patterns and etc.)and who looks short-term entries but my recommendation is to stay away from the markets and to not mess with it!
NB: Here You can find only SHORT-TERM bias!
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 day!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Note
Soon we get a bounce because altcoins are made the bottom!Note
Here is the 1H timeframe. There You can understand better, where those black channel lines came from.Currently, the first light blue support has held us - can't say nicely but we got a nice small bounce and the whole market made a small bounce - which is also the clean area/green box upper area.
Note
The clean area is almost filled! We have also one bullish candlestick pattern called hammer on the green box! Let’s see...Note
"The clean area" is filled, finally!!!Now or never :)
Note
Looks like “now” :)A perfect rejection from major support at $4,929, a bounce formed a H1 timeframe bullish Hammer and 4H candle close was also above the $4,929!
4H char looks damn ugly but I think we still might see a bounce from here ar least $5,375!
Note
We break support after support, crossing areas after crossing areas.What here we can do is which is the next support level and the next support level is:
$4,470
Historically, it has worked multiple times as a strong resistance but You know role reversals then support may become a resistance and resistance may become a support.
So, and currently we have this second options where old resistance becomes support. Let's see how this hold us. It is the last stronger and cleaner support level from this area!
Note
If You search confirmations from candlestick patterns then forget 1 candle patterns! Two or three candle patterns are more reliable on the current market!Two candle patterns: Engulfing, Tweezer bottom, Railroad tracks
Three: Morning Star, Rising Three Methods
And those at least at the 1H timeframe and on the decent support levels!
Note
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All the best!
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