Crypto-AST BTC/USD Breakdown - 13/01/2020
DAILY CHART
- There is somewhat of a descending wedge on the wider scale of the daily chart with higher lows created at 19533$, 13093$ and 10523$ respectively. It is also important to point out that our fan structure (light blue lines indicated on chart) which has previously been used as support was broken through and now is acting as a resistance at the 8440$ price level whereby we saw a rejection and a high recorded at this price before consolidation into the 7900-8100$ region as the bears took back charge in the market. Now, it would be quite a feat if the bulls are able to cross above the 8500$ price level with this fan structure acting as resistance and with EMA 200 as a resistance at this level. I believe that bitcoin should be heading towards the previous price ceiling of 7600$ and if price ceilings are broken, they become temporary supports, so it’s safe to assume we may gain some consolidation at this level before any further bearish movement - this is inline with the fact that MA’s are at 7600$ for support. In the scenario that we see a bearish stop hunt, I would assume that price has maximum upward pressure to 8350$ in this scenario.
- For a more longer term analysis of the bitcoin market, we are eyeing a return to the 6800$ level with this level being broken leading to 6500$ and in the scenario that 6500$ is broken, our target is for 5823$ whereby we will find momentary support and consolidation at this level ; this seems in line with the fact that EMA 200 support currently lays at this level following a rejection from the support bound of the fan structure forming resistance. The most solid support of the fan structure comes at the 5000-4800$ level with this also being the supporting of the descending wedge and also being the support of the fan structure.
- We have a massive bearish bias in the market with our buy zones at 4800$, 3,300$ and finally but most likely of 2,200$! We will consider turns in the market and bull run psychology entering the market at any of these given price intervals.
4 HOURLY CHART
- Now lets focus in more on our microscope and come to a judgement for the 4 hourly chart on the BITFINEX exchange. We can see that there is a bearish cross over of MA’s on the 4 hourly chart about to happen. Moreover, we can see that the MA’s are being used as support and a final break of the open of the latest candle at 8060$ will lead to a break of the ascending support line and also would lead to us swiftly making our way to the 7600$ EMA 200 support! None the less, as long as this supporting trend line structure is kept in tact, we may have wicks to as high as 8300$ but more reasonably 8200$ before bearish price action resumes.
1 HOURLY CHART
- We see more evidence of the idea that we could see a bearish stop hunt towards the 8200-8300$ region before bearish activity really kicks in by the fact that we are seeing MA’s being used a support on the hourly chart. Moreover, the trend line was also used clearly as support. A minor bearish crossover on MA’s seems to be turning bullish and we saw clear bullish reversal candle formation on the hourly. Moreover, its evident that we may not see a straight price crash to 7600$ but rather we may see some support forming at the 7900$ level for price consolidation to retest the 8100$ previous price floor before price resumes its journey to the downside. With this evidence, I would advice not to short just yet unless we see the 8300$ level at the least or a clear reversal from the 8200$ level OR finally a break of ascending support trend line below 8060$ with conservative take profit at 7900$ and then re-entering once 7900$ is broken to the 7600$ price level.
CRYPTOCURRENCY MARKET ANALYSIS OUT OF THIS WORLD!
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DAILY CHART
- There is somewhat of a descending wedge on the wider scale of the daily chart with higher lows created at 19533$, 13093$ and 10523$ respectively. It is also important to point out that our fan structure (light blue lines indicated on chart) which has previously been used as support was broken through and now is acting as a resistance at the 8440$ price level whereby we saw a rejection and a high recorded at this price before consolidation into the 7900-8100$ region as the bears took back charge in the market. Now, it would be quite a feat if the bulls are able to cross above the 8500$ price level with this fan structure acting as resistance and with EMA 200 as a resistance at this level. I believe that bitcoin should be heading towards the previous price ceiling of 7600$ and if price ceilings are broken, they become temporary supports, so it’s safe to assume we may gain some consolidation at this level before any further bearish movement - this is inline with the fact that MA’s are at 7600$ for support. In the scenario that we see a bearish stop hunt, I would assume that price has maximum upward pressure to 8350$ in this scenario.
- For a more longer term analysis of the bitcoin market, we are eyeing a return to the 6800$ level with this level being broken leading to 6500$ and in the scenario that 6500$ is broken, our target is for 5823$ whereby we will find momentary support and consolidation at this level ; this seems in line with the fact that EMA 200 support currently lays at this level following a rejection from the support bound of the fan structure forming resistance. The most solid support of the fan structure comes at the 5000-4800$ level with this also being the supporting of the descending wedge and also being the support of the fan structure.
- We have a massive bearish bias in the market with our buy zones at 4800$, 3,300$ and finally but most likely of 2,200$! We will consider turns in the market and bull run psychology entering the market at any of these given price intervals.
4 HOURLY CHART
- Now lets focus in more on our microscope and come to a judgement for the 4 hourly chart on the BITFINEX exchange. We can see that there is a bearish cross over of MA’s on the 4 hourly chart about to happen. Moreover, we can see that the MA’s are being used as support and a final break of the open of the latest candle at 8060$ will lead to a break of the ascending support line and also would lead to us swiftly making our way to the 7600$ EMA 200 support! None the less, as long as this supporting trend line structure is kept in tact, we may have wicks to as high as 8300$ but more reasonably 8200$ before bearish price action resumes.
1 HOURLY CHART
- We see more evidence of the idea that we could see a bearish stop hunt towards the 8200-8300$ region before bearish activity really kicks in by the fact that we are seeing MA’s being used a support on the hourly chart. Moreover, the trend line was also used clearly as support. A minor bearish crossover on MA’s seems to be turning bullish and we saw clear bullish reversal candle formation on the hourly. Moreover, its evident that we may not see a straight price crash to 7600$ but rather we may see some support forming at the 7900$ level for price consolidation to retest the 8100$ previous price floor before price resumes its journey to the downside. With this evidence, I would advice not to short just yet unless we see the 8300$ level at the least or a clear reversal from the 8200$ level OR finally a break of ascending support trend line below 8060$ with conservative take profit at 7900$ and then re-entering once 7900$ is broken to the 7600$ price level.
CRYPTOCURRENCY MARKET ANALYSIS OUT OF THIS WORLD!
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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.