BITCOIN - MASSIVE Pullback, What Could Happen Next!?
Updated
The market makes a pullback and this pullback is very scary. Yes, we waited for a pullback but not like this one that even all altcoins are bleeding heavily!
Let's jump quickly into the action:
If we want to see a bullish market structure then we have to bounce upwards almost immediately because we are in the strong support area and break below could mean disaster!
Strong area (green triangle) and possible bounce criteria:
1. Round number $7000
2. May low
3. In the 4 hour chart 100 and 200 EMA which starts to work as supports
4. Trendline from wicks since 14.08
5. Trendline from bodies since 14.08
6. The market structure could make still a higher low which will be a very good sign
7. Bigger Fibonacci retracement level, pulled from 22.08 to 04.09, is 38%
8. Smaller Fibonacci retracement, pulled from 30.08 to 04.08, is between the two main levels: 62% and 70.5%
9. We have still an EMA golden cross on the 4h timeframe (100&200)
Targets: the maximum first target could be around $7280 but don't know how the market and how people react to this "crash". Definitely, AGAIN, people are superstition, scared and there is still panic in this market!
So, if we drop below those strong criteria's and we get a close below the strong support area at $6767 then we have a lower lowe market structure and we are below the EMA's which all indicates that the price may change from short-term uptrend to downtrend.
Also, we have a big continuation batter called "Rising Wedge". Close below the rising wedge bottom trendline will indicate that the bigger trend may continue and the bigger trend is still downwards and we go and test the lower levels!
Hopefully, this quick overview helps You out a little bit to confirm Your own analysis!
Please, don't forget to LIKE!
Thank You for your support!
Have a nice week!
Let's jump quickly into the action:
If we want to see a bullish market structure then we have to bounce upwards almost immediately because we are in the strong support area and break below could mean disaster!
Strong area (green triangle) and possible bounce criteria:
1. Round number $7000
2. May low
3. In the 4 hour chart 100 and 200 EMA which starts to work as supports
4. Trendline from wicks since 14.08
5. Trendline from bodies since 14.08
6. The market structure could make still a higher low which will be a very good sign
7. Bigger Fibonacci retracement level, pulled from 22.08 to 04.09, is 38%
8. Smaller Fibonacci retracement, pulled from 30.08 to 04.08, is between the two main levels: 62% and 70.5%
9. We have still an EMA golden cross on the 4h timeframe (100&200)
Targets: the maximum first target could be around $7280 but don't know how the market and how people react to this "crash". Definitely, AGAIN, people are superstition, scared and there is still panic in this market!
So, if we drop below those strong criteria's and we get a close below the strong support area at $6767 then we have a lower lowe market structure and we are below the EMA's which all indicates that the price may change from short-term uptrend to downtrend.
Also, we have a big continuation batter called "Rising Wedge". Close below the rising wedge bottom trendline will indicate that the bigger trend may continue and the bigger trend is still downwards and we go and test the lower levels!
Hopefully, this quick overview helps You out a little bit to confirm Your own analysis!
Please, don't forget to LIKE!
Thank You for your support!
Have a nice week!
Note
The price stops around $7000. Currently, we could see on the 5 min. chart that the price draws us a consolidation area / bearish continuation chart pattern called "Bear Flag". What's out if it breaks below! Currently, if we look at higher timeframes then we are still in this green area where we could make an HL (higher low)!Note
Like I said: “what’s out” - we break below the bear flag and currently we have found a support from the trendline which is pulled from the bodies on the 4h chart! Price action wise, at the moment nothing positive! We just have to wait and watch until we collect some data and collect some signs from the current level because we are still in the HL area!If You think that this topic is helpful then please support me and hit the LIKE button!
Thank You!
Note
...and on the 4h char we almost touched the 200EMA which should work as a support! Break below = bad Note
Yesterday I said/showed that if the price closes below the strong support area (blue line) and below the minor upper trendline which is also a part of the continuation pattern "Rising Wedge" then we drop into the $6500 area and currently we are in this zone! In August we tried to attempt to break above this level many many times and currently, the old resistance becomes a support!
RSI is totally oversold and we made over $1000 drop which is massive. So, we could guess that we could find a small support from $6400-$6500 and this support will guide us may be around $6700! There is a historically a strong level which starts to work as a resistance and from the current drop points (high to low) pulled Fibonacci retracement is 38% in this area!
Currently, again, we just have to watch and wait for what the price action shows to us. Can we find something positive, because the market is still under the pressure and full of panic.
Note
Again we are back between our "favourite" levels $6000-$6500 and again same levels start to guide us to the further move!Currently, in the 5 min. chart, we start to make a breakout from the triangle and luckily upwards - something positive! On the way to the breakout we have to break above the April low level which is historically worked pretty well! If this breakout is successful then the pattern guide us to the ~$6600 but on the way to this area, the price have to fight with $6500.
I'll try to keep You posted!
Note
...and now we have a 1h candle close confirmation - breakout from the triangle and close above the April low!Note
Suddenly the bullish sign turns into the bearish because we have a break below the counter upwards trendline!!Note
We need more data from this price level to collect some better signs!So, I wait! :)
Note
Soon, You will see a new Idea!Note
NEW TRADING IDEA!Please, support me and hit the LIKE button!
Have a nice weekend!
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