BITCOIN - Be Ready, Be Cautious!
Updated
After the last update, the price hasn't shown any signs to either direction, especially the volume. Actually, if we look 1H chart, then the volume is just drifting around the lows, 5 days+ we haven't seen a single volume bounce.
This will lead us into the world of probability which will tell us that soon something will happen but what, and where is the confirmation areas, let's find out!
To be said, currently the price is on the consolidation area and we can't predict where it may gonna go, we need more data, we need more indications and confirmations to say it correctly. At the moment I can say that BTC looks a bit weaker than before (still we are on the uptrend and we have some nice higher lows and lower highs) but luckily we have some very strong support levels below the current price.
Let's start from the double bottom chart pattern. Yes, it is a bit sloppy and almost middle of nowhere but actually here is a pretty important aspect. The double bottom chart pattern works with a much higher success rate when the second low point is on the trendline - here it matches exactly with the major counter trendline. In this area, around $3,800, we have also EMA200 which should act as a support. So, decent level but still be cautious because I don't like that price action which have been in this area and if the volume - bearish volume - kicks in then the price goes through this level like a warm knife through the butter. Summary: decent level but we have to wait for rejection, at least we have something below the price which makes a drop a bit harder.
Luckily this level is not the only one, we have a blue area, around $3,750, which is discovered on the Daily timeframe just below the previously talked level (orange support area). We have multiple rejections from this level (~20 both directions), we don't have any candle close inside the area and if the price has broken through the area then only with strong candles and with high volume:
As said, we haven't seen any volume bounces more than 5 days, from the bullish perspective let's hope that sellers don't accumulate because to break through the first level and to break through from the blue area needs a strong volume. That's why I have a red arrow just below the blue support area. If we get a 4H candle close below this blue area then it should be confirmed that we go and retest some lower levels - $3,500-$3,600 - I keep You posted!
SUMMARY: As said, the price is on the consolidation area and sadly, we don't have any bullish confirmation areas we have only possible bounce areas where we have to watch what the price do.
Bullish bias: Perfect scenario would be a blue area touch, ~$3,750 and quick rejection upwards after that which guides us above the major counter trendline, definitely wait for a rejection!! (Bullish candlestick patterns etc.)
Bearish bias: First bearish signs may come if we get a candle close below the black trendline, let's say at least 1h candle close and the bigger bearish confirmation comes after the candle close below the blue area. Yes, we have been below the blue area and the price has bounced quickly back but currently, the situation is a little bit different!
Do not forget to support my idea post by hitting the "LIKE button!
Thank You!
Have a nice day,
Cheers!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
This will lead us into the world of probability which will tell us that soon something will happen but what, and where is the confirmation areas, let's find out!
To be said, currently the price is on the consolidation area and we can't predict where it may gonna go, we need more data, we need more indications and confirmations to say it correctly. At the moment I can say that BTC looks a bit weaker than before (still we are on the uptrend and we have some nice higher lows and lower highs) but luckily we have some very strong support levels below the current price.
Let's start from the double bottom chart pattern. Yes, it is a bit sloppy and almost middle of nowhere but actually here is a pretty important aspect. The double bottom chart pattern works with a much higher success rate when the second low point is on the trendline - here it matches exactly with the major counter trendline. In this area, around $3,800, we have also EMA200 which should act as a support. So, decent level but still be cautious because I don't like that price action which have been in this area and if the volume - bearish volume - kicks in then the price goes through this level like a warm knife through the butter. Summary: decent level but we have to wait for rejection, at least we have something below the price which makes a drop a bit harder.
Luckily this level is not the only one, we have a blue area, around $3,750, which is discovered on the Daily timeframe just below the previously talked level (orange support area). We have multiple rejections from this level (~20 both directions), we don't have any candle close inside the area and if the price has broken through the area then only with strong candles and with high volume:
As said, we haven't seen any volume bounces more than 5 days, from the bullish perspective let's hope that sellers don't accumulate because to break through the first level and to break through from the blue area needs a strong volume. That's why I have a red arrow just below the blue support area. If we get a 4H candle close below this blue area then it should be confirmed that we go and retest some lower levels - $3,500-$3,600 - I keep You posted!
SUMMARY: As said, the price is on the consolidation area and sadly, we don't have any bullish confirmation areas we have only possible bounce areas where we have to watch what the price do.
Bullish bias: Perfect scenario would be a blue area touch, ~$3,750 and quick rejection upwards after that which guides us above the major counter trendline, definitely wait for a rejection!! (Bullish candlestick patterns etc.)
Bearish bias: First bearish signs may come if we get a candle close below the black trendline, let's say at least 1h candle close and the bigger bearish confirmation comes after the candle close below the blue area. Yes, we have been below the blue area and the price has bounced quickly back but currently, the situation is a little bit different!
Do not forget to support my idea post by hitting the "LIKE button!
Thank You!
Have a nice day,
Cheers!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Note
Something has started to happen, we may get the first bullish confirmation and the altcoins are on the pretty strong "rally"!Bullish confirmation is the blue trendline break, it should guide us into the higher levels if we get at least 4H candle close above of it and as said some altcoins make pretty nice pumps!
Interesting times ahead and here could come the prementioned volume spike and hopefully, the price follows that green arrow!
Please, take a second and support my idea post by hitting the like.
All the best!!
Note
We got the volume, let's see where it gonna drives us, currently fake outs either direction!!Note
Perfectly expected that the volume has to increase and it has increased dramatically.Currently, fake outs to either direction and as said, be cautious, let the things settle down a bit and firstly let's wait for at least 1H candle close. It will give us some confirmations - at the moment first confirmations are the trendlines above and below the current price.
Note
Yesterday, as expected, we got that higher volume (two weeks highest) but the volume was pure manipulation, a shake off or whatever this move was. It shows again exactly that rule, to trade breakouts YOU HAVE TO WAIT FOR A CANDLE CLOSE!! There was a triangle and it made fake outs to either direction and the 1H candle ended up with massive legged Doji. So, sadly we didn't get that volume which will guide us into the direction but slowly the price is made a breakout upwards from the blue line.This is a very sloppy and poor breakout and to completely believe that is too naive but still, it could be a sign.
We have a breakout from the triangle - upwards - and today, the altcoins are also on the plus side.
Now there is more pos. signs than neg., this was also great that the marked areas worked exactly as support levels around the mentioned $3,800!
Note
New BTC analysis, do we see a rally to the $4,500!?
Also, please take a second and support my ide post by hitting the "LIKE" button!
Have a nice day!
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