Don't Jump the Gun Yet!
Updated
After reaching the 14,000 level in June, the momentum of the market has been constantly decreasing. This suggest two possible scenarios.
First, another phase of accumulation, probably by the institutional traders, is being played out in the market. Since June, the price has retraced to the ~10,000 level multiple times and has spiked shortly after. Nonetheless, the midterm swing, being ~14,000, is not broken yet. Despite this movement, the price has formed a flag pattern which suggest that the trend is likely to continue and price is about to move higher and higher. The second scenario suggests the exact opposite of the first one. After failing to break the ~14,000 level, a series of lower highs is apparent on the chart. Nonetheless, ~10,000 was the attractive entry point for many buyers as the price has been constantly supported in this level. After all, the price movement has created a descending triangle pattern. Acting as a bearish pattern, this scenario is confirmed if we push lower and lower where the price breaks and closes below the 10,000 level. As of now, the weekly momentum is decreasing, but the bullish momentum is returning to the market on the daily chart. Price is moving close to 100 MA which raises up concerns if it breaks this level and closes below it.
Just noteworthy to mention, I think the global markets are settling down. There are talks about possible trade deals between the U.S. and China, possible negotiations with Iran, as well as other optimistic news. This has already affected the price of Crude and Gold. If optimism is the case for some global issues, a decline for BTC would not be out of expectation at all and I think this is more likely (even though there is no tangible evidence in the price movement as far as the technical analysis is concerned).
Stay tuned!
Mohammad Lashkarizadeh.
First, another phase of accumulation, probably by the institutional traders, is being played out in the market. Since June, the price has retraced to the ~10,000 level multiple times and has spiked shortly after. Nonetheless, the midterm swing, being ~14,000, is not broken yet. Despite this movement, the price has formed a flag pattern which suggest that the trend is likely to continue and price is about to move higher and higher. The second scenario suggests the exact opposite of the first one. After failing to break the ~14,000 level, a series of lower highs is apparent on the chart. Nonetheless, ~10,000 was the attractive entry point for many buyers as the price has been constantly supported in this level. After all, the price movement has created a descending triangle pattern. Acting as a bearish pattern, this scenario is confirmed if we push lower and lower where the price breaks and closes below the 10,000 level. As of now, the weekly momentum is decreasing, but the bullish momentum is returning to the market on the daily chart. Price is moving close to 100 MA which raises up concerns if it breaks this level and closes below it.
Just noteworthy to mention, I think the global markets are settling down. There are talks about possible trade deals between the U.S. and China, possible negotiations with Iran, as well as other optimistic news. This has already affected the price of Crude and Gold. If optimism is the case for some global issues, a decline for BTC would not be out of expectation at all and I think this is more likely (even though there is no tangible evidence in the price movement as far as the technical analysis is concerned).
Stay tuned!
Mohammad Lashkarizadeh.
Note
Note
Volatility is coming back to the market. We had tested the swing lows and they seem to be weakened severely; watching for a bearish breakout on the descending triangle. Will go short after the confirmation... Trade closed: target reached
Wow that was a fast move, but I am glad it went in our favor. Gained approximately 10%.Direction Short
Entry @ 9718.43
Exit @ 8731.58
Profit 11.30%
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