BITCOIN - The Market Is Tired 2.0
Updated
The BTC price has slowly climbed upwards to the important area/box. The bounce still came and the trendline still held up the price. Movement upwards came from the trendline after the Double Bottom chart pattern formation:
Currently, Bitcoin price has starting to fight with the strong resistance area, as I said in my previous post, then this area is technically the most important between $5,000-$5,500 - considering my bearish viewpoints and considering technical analysis. Again, let's count those short-term reversal criteria:
1. Fibonacci golden ratio - 62%
2. Historically worked support and resistance levels (orange lines in the blue box).
3. Volatility increase has been pretty significant in this area.
4. Short-term lower low and this area looks good to make short-term lower high.
5. A possible bearish chart pattern formation - Head and Shoulders:
Actually, the price has already tested the box two times and it got rejections back exactly from the lower orange line. As mentioned this volume increase then the second rejection gave us a bigger volume than the candles around of it but that is not all because the price hasn't tested the Fibonacci level, yet. Let's see, we need a little bit bigger reaction and probably a bit bigger volume should kick in just a little bit higher levels, around $5,370-$5,400, after it has touched all the criteria which are on the blue area (Fibonacci level and higher orange line).
As said in my previous post, then if the Bitcoin price starting to reach into the blue box, then wait for a bearish candlestick pattern formation. More reliable bearish candlestick patterns are: Bearish Engulfing, Evening Star, Shooting Star, Railway Tracks. You should look at those patterns on the blue area and to be even more reliable pattern then those patterns have to occur on the 4H timeframe!
Waiting for this bearish candlestick pattern formation is not said just for fun, because the price has climbed pretty steadily into the position where it can make a bigger bounce upwards, THROUGH the mentioned box. Consistency has been the keyword on the crypto world and it may become again into the play, here, in the strong resistance area. I start to make more frequent updates because the area is really important, do we see rejection or the tiny consistency guide the price through from the resistance, to the ~$5,800.
"When you genuinely accept the risks, you will be at peace with any outcome."
– Mark Douglas
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice week,
Cheers!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Previous analysis:
Currently, Bitcoin price has starting to fight with the strong resistance area, as I said in my previous post, then this area is technically the most important between $5,000-$5,500 - considering my bearish viewpoints and considering technical analysis. Again, let's count those short-term reversal criteria:
1. Fibonacci golden ratio - 62%
2. Historically worked support and resistance levels (orange lines in the blue box).
3. Volatility increase has been pretty significant in this area.
4. Short-term lower low and this area looks good to make short-term lower high.
5. A possible bearish chart pattern formation - Head and Shoulders:
Actually, the price has already tested the box two times and it got rejections back exactly from the lower orange line. As mentioned this volume increase then the second rejection gave us a bigger volume than the candles around of it but that is not all because the price hasn't tested the Fibonacci level, yet. Let's see, we need a little bit bigger reaction and probably a bit bigger volume should kick in just a little bit higher levels, around $5,370-$5,400, after it has touched all the criteria which are on the blue area (Fibonacci level and higher orange line).
As said in my previous post, then if the Bitcoin price starting to reach into the blue box, then wait for a bearish candlestick pattern formation. More reliable bearish candlestick patterns are: Bearish Engulfing, Evening Star, Shooting Star, Railway Tracks. You should look at those patterns on the blue area and to be even more reliable pattern then those patterns have to occur on the 4H timeframe!
Waiting for this bearish candlestick pattern formation is not said just for fun, because the price has climbed pretty steadily into the position where it can make a bigger bounce upwards, THROUGH the mentioned box. Consistency has been the keyword on the crypto world and it may become again into the play, here, in the strong resistance area. I start to make more frequent updates because the area is really important, do we see rejection or the tiny consistency guide the price through from the resistance, to the ~$5,800.
"When you genuinely accept the risks, you will be at peace with any outcome."
– Mark Douglas
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice week,
Cheers!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Previous analysis:
Note
The price has reached into the blue box. Currently, strong 1H candle and soon we will get information, do we get a rejection or not. Right now those all marked areas are touched, let's wait and watch how the market reacts. Altcoins are mixed, some of them are on the daily plus side some of them are on the daily minus said, so, not any significant signs from them.I keep You updated!
Note
Currently, the price has stayed on the blue area. We don’t have seen any bearish candlestick pattern but let’s wait for todays candle close. A candle close below $5,400 will still be a bearish view but close above of it will decrease slightly that. Overall, the setup is valid until $5.500, 4h candle close above of it will be a bad sign for bears!Cheers!
Note
Currently, the mentioned consistency has won the battle. Yes, we are still in this danger zone, below $5,500, but the price action will be a sign that the price may go and retest higher levels. We didn't got any bearish candlestick pattern on the marked area so, you should be okay! The mentioned area around $5,400 was technically the strongest (between the $5,000-$5,500) and if I would not be notified for it, then it would have been a mistake.
Currently, the altcoins are on a better shape than yesterday. Some of them are made breakouts from bullish patterns and actually, they look pretty good. This could be a sign that we might see a continuation move to the multiple mentioned upwards targets which stays around $5,800.
Note
It was a sign (the yesterday’s consistency) and now the price has starting to approach that mentioned $5800. Altcoins are on the minus side so, possibly only BTC gets pumped, which again is an indication that this is one of those manipulative moves! This is the crypto-world and those divergences with altcoins are usual but unpredictable!
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