BITCOIN - Very Important Confirmation Area!!
Updated
Yesterday the price got a rejection downwards from the strong resistance area around $5,200. I mentioned this area because it has worked recently as very strong support and yesterday it worked as a resistance, so, it should not be a surprising move to you.
Yesterday's Daily candle close formed a bearish candlestick pattern called Engulfing but it got a close above the 5k level. This 5k level looks like a very important price level to get further bearish confirmations. Luckily this is not the only one, a candle close inside the red area triggers several bearish chart patterns and bearish price actions.
It could be a final and decisive bearish confirmation around the 5k because it is just so powerful!
A 4H candle close(!!) inside or slightly below the red area makes a breakout from:
- The Head and Shoulders pattern: it is a bearish chart pattern and if the 4H candle gets a close below of it then the pattern is active and the price may take a direction downwards. It has very powerful shoulders exactly at the strong resistance area - $5,200
- The Ascending Channel: a candle close inside the red area confirms also a breakout from the channel, another bearish sign
- Recently nicely worked round number $5,000: since 5. April the price isn't closed below the 5k level on the 4H chart. It has tried 9 times but all those attempts were failed. So, if it gets a close below of it then it should give us also another bearish confirmation because bears have won a battle and they managed to push the price below the 5k level.
- If the candle gets a close inside the red area then we know that the yesterday's candle was a bearish candlestick pattern Engulfing which will supporting that powerful close below 5k level.
It is a very important area, watch it closely and it gets confirmed after(!!) the 4H candle close inside or slightly below the red area!
Because of the strong bearish setup, I have pointed out the target area.
The target area is also pretty powerful and if You are short then it would be a perfect spot to take some profits.
Target area consists of:
- Fibonacci Extension 161% at $4,538
- Fibonacci Retracement 38% at $4,591, pulled from the 2018 low point to the 2019 high point
- Fibonacci Retracement 62% at $4,481, pulled from last LH before the rally to the top
- EMA200 on the Daily at $4,673, on the 4H at $4,603
- Head and SHoulders pattern target around $4,400
- Curve trendline from the bottom should act as a support level (blue line)
This bearish view becomes invalid after a 4H candle close inside the green rectangle just above the strong resistance at $5,200. Bullish target remains the same - $5,777
Please, take a second and support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice week,
Best regards!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Yesterday's Daily candle close formed a bearish candlestick pattern called Engulfing but it got a close above the 5k level. This 5k level looks like a very important price level to get further bearish confirmations. Luckily this is not the only one, a candle close inside the red area triggers several bearish chart patterns and bearish price actions.
It could be a final and decisive bearish confirmation around the 5k because it is just so powerful!
A 4H candle close(!!) inside or slightly below the red area makes a breakout from:
- The Head and Shoulders pattern: it is a bearish chart pattern and if the 4H candle gets a close below of it then the pattern is active and the price may take a direction downwards. It has very powerful shoulders exactly at the strong resistance area - $5,200
- The Ascending Channel: a candle close inside the red area confirms also a breakout from the channel, another bearish sign
- Recently nicely worked round number $5,000: since 5. April the price isn't closed below the 5k level on the 4H chart. It has tried 9 times but all those attempts were failed. So, if it gets a close below of it then it should give us also another bearish confirmation because bears have won a battle and they managed to push the price below the 5k level.
- If the candle gets a close inside the red area then we know that the yesterday's candle was a bearish candlestick pattern Engulfing which will supporting that powerful close below 5k level.
It is a very important area, watch it closely and it gets confirmed after(!!) the 4H candle close inside or slightly below the red area!
Because of the strong bearish setup, I have pointed out the target area.
The target area is also pretty powerful and if You are short then it would be a perfect spot to take some profits.
Target area consists of:
- Fibonacci Extension 161% at $4,538
- Fibonacci Retracement 38% at $4,591, pulled from the 2018 low point to the 2019 high point
- Fibonacci Retracement 62% at $4,481, pulled from last LH before the rally to the top
- EMA200 on the Daily at $4,673, on the 4H at $4,603
- Head and SHoulders pattern target around $4,400
- Curve trendline from the bottom should act as a support level (blue line)
This bearish view becomes invalid after a 4H candle close inside the green rectangle just above the strong resistance at $5,200. Bullish target remains the same - $5,777
Please, take a second and support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice week,
Best regards!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Note
Yesterday, the price didn't reach into the confirmation area, it got a bounce upwards, third time from the channel bottom trendline and right now it is above the strong resistance BUT below the Fibonacci golden ratio 62%. There is a tiny price zone, the move upwards didn't get momentum and the Fibo level holds it nicely.Bearish confirmation area is still the same and from the bullish perspective, there are some heavy resistances just above the current price - Fibo level, channel middle point, etc. So, do not get too excited about this move what occurred yesterday.
Note
NEW BTC analysis:
Have a nice day!
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