BITCOIN - Correction Warning! Candlestick Pattern Indications!
Updated
I would like to warn you about the current situation and about the current price action.
The price action on the strong resistance area, "the first clean resistance" as I said one of my previous posts, looks like bearish BUT it needs confirmation and the confirmation should come after today's candle close!!
Currently, the Daily candles have four rejections downwards from the $8,200. $8,200 level matching exactly with our clean resistance area and matching exactly with our well-known curve trendline which had three touches and currently, it makes a fourth:
As you see, the area is pretty strong and if You have read my previous post about this $8,000 level then we don't stay here for multiple weeks to consolidate, the price is here to make a move and today I would like to give you one confirmation area where the bearish move should get confirmed.
Candlestick pattern "Shooting Star"
Currently, the price has been around $8,000 approximately four days but those days have been pretty informative. The second Daily candle rejection from the blue line at $8,200 gave us a bearish candlestick pattern called "Shooting Stars".
This is correct Shooting Star, the body is perfectly 1:3 from the upper wick and it is pretty symmetrical, great, BUT this is a green one. Yes, it is a Shooting Star on the strong area but the green close means - sellers have started to come into the market BUT still, buyers dominated that day and they managed to hold that price up. It shows that sellers had an attempt to push the price down, we can't say that this is failed attempt but let's see, it is still a bearish candlestick pattern "Shooting Star" but it would be more reliable if it would be red (bearish).
Candlestick pattern "Bearish Engulfing"
Possibly, the second bearish candlestick pattern on the strong resistance area and this second one is more powerful than the first one, let me introduce to you - The "Bearish Engulfing".
Why possibly? Because the candlestick patterns are ONLY THEN VALID WHEN THEY ARE CLOSED!! So, currently, we have to wait for that today's candle close which may give us that mentioned confirmation and this mentioned confirmation will come after the today's candle close below the red line, below the $7,831 price level.
Overall, the Engulfing is a pretty strong indication especially if it is on the strong price level and currently the Bitcoin price is on the strong resistance:
- The round number $8,000 has worked as a resistance
- The curve trendline should act as a resistance
- The first clean resistance after that pump from the bottom!
To get that mentioned bearish Engulfing on this level, which is also supported by the hidden Shooting Star, would be a pretty nice indication for the movement downwards but let's see.
SUMMARY: We have two bearish candlestick patterns on the strong area, the second candlestick pattern gets confirmed after today's candle close and if it gets a close below the red line $7,831 then it is an indication that the correction may start (altcoins are also started to make something). IF today's candle doesn't get a close below that mentioned red line then this idea is invalid! The correction is "on the table" ONLY then when it gets a close below $7,831!
"The consistency you seek is in your mind, not in the markets."
– Mark Douglas
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice day,
Cheers!
*This information is mostly used for educational purposes only!
The price action on the strong resistance area, "the first clean resistance" as I said one of my previous posts, looks like bearish BUT it needs confirmation and the confirmation should come after today's candle close!!
Currently, the Daily candles have four rejections downwards from the $8,200. $8,200 level matching exactly with our clean resistance area and matching exactly with our well-known curve trendline which had three touches and currently, it makes a fourth:
As you see, the area is pretty strong and if You have read my previous post about this $8,000 level then we don't stay here for multiple weeks to consolidate, the price is here to make a move and today I would like to give you one confirmation area where the bearish move should get confirmed.
Candlestick pattern "Shooting Star"
Currently, the price has been around $8,000 approximately four days but those days have been pretty informative. The second Daily candle rejection from the blue line at $8,200 gave us a bearish candlestick pattern called "Shooting Stars".
This is correct Shooting Star, the body is perfectly 1:3 from the upper wick and it is pretty symmetrical, great, BUT this is a green one. Yes, it is a Shooting Star on the strong area but the green close means - sellers have started to come into the market BUT still, buyers dominated that day and they managed to hold that price up. It shows that sellers had an attempt to push the price down, we can't say that this is failed attempt but let's see, it is still a bearish candlestick pattern "Shooting Star" but it would be more reliable if it would be red (bearish).
Candlestick pattern "Bearish Engulfing"
Possibly, the second bearish candlestick pattern on the strong resistance area and this second one is more powerful than the first one, let me introduce to you - The "Bearish Engulfing".
Why possibly? Because the candlestick patterns are ONLY THEN VALID WHEN THEY ARE CLOSED!! So, currently, we have to wait for that today's candle close which may give us that mentioned confirmation and this mentioned confirmation will come after the today's candle close below the red line, below the $7,831 price level.
Overall, the Engulfing is a pretty strong indication especially if it is on the strong price level and currently the Bitcoin price is on the strong resistance:
- The round number $8,000 has worked as a resistance
- The curve trendline should act as a resistance
- The first clean resistance after that pump from the bottom!
To get that mentioned bearish Engulfing on this level, which is also supported by the hidden Shooting Star, would be a pretty nice indication for the movement downwards but let's see.
SUMMARY: We have two bearish candlestick patterns on the strong area, the second candlestick pattern gets confirmed after today's candle close and if it gets a close below the red line $7,831 then it is an indication that the correction may start (altcoins are also started to make something). IF today's candle doesn't get a close below that mentioned red line then this idea is invalid! The correction is "on the table" ONLY then when it gets a close below $7,831!
"The consistency you seek is in your mind, not in the markets."
– Mark Douglas
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice day,
Cheers!
*This information is mostly used for educational purposes only!
Note
Currently, it is really on the edge :)Even 4H candles haven't got a close below the mentioned confirmation level after that idea post but this is not our confirmation that we should wait. We wait that current Daily candle close which has to close below $7,831 to confirm that second bearish candlestick pattern "Bearish Engulfing" around the $8000 levels.
Thank You all for the support!
Regards!
Note
The move, the correction downwards has occurred as it was expected from the strong resistance area. Drop from the $8,000 found the bottom exactly from the pointed strong support area at $6,700. Currently, the price is between those areas and definitely, it is a bit risky zone, because currently, it is hard to say how the market reacts. Need to collect some more data from smaller timeframes to make some kind of further decisions.Thanks!
Note
4000 FOLLOWERS!!Thank You all for the support and thank You all for the trust!
I try to deliver more accurate and educational stuff in the future!
(It is a pretty big round number, 4000, hopefully, it doesn't act as a resistance level :D)
All the best and have a wonderful weekend!
Thanks!
BTW, Bitcoin and altcoins may start to go lower, we just had lowest 15 min candle close after the correction and altcoins are also on the deeper minus side (today).
Note
NEW idea post!!
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