Bitcoin - Price Structure
Updated
Today we have BTC/USD on the daily chart, I'd like to give you all a brief overview of my current view ahead of the 1st of August.
As you can see price has created several key areas of support and resistance which we can use to our advantage.
Currently, price is trading in between $3,000 and the minor support trendline , this area turned into support around May 2017.
If we manage to break $3,000 we will see a move upwards of $3,500, however, if we continue to bounce off resistance, with larger players taking profit we will see a move back down to $2,000 or lower.
Whilst looking at this chart I would like to address the panic word "crash".
Bitcoin dropping from $3,000 to $1,800 over a period of one month is not a crash, it's a correction.
Even if we witnessed price drop to the lower support trendline at $1,300 (I find highly unlikely, but possible) it would still be in a strong uptrend.
As I have mentioned previously, as bitcoin achieves certain key levels, it will not return to them ever again unless we see a more dominant coin in the future.
The main purpose of this post is to highlight the key price structure within the market, refer to this chart whether you're going long or short.
To those trading over the next two weeks, stay safe and make smart investment decisions.
As you can see price has created several key areas of support and resistance which we can use to our advantage.
Currently, price is trading in between $3,000 and the minor support trendline , this area turned into support around May 2017.
If we manage to break $3,000 we will see a move upwards of $3,500, however, if we continue to bounce off resistance, with larger players taking profit we will see a move back down to $2,000 or lower.
Whilst looking at this chart I would like to address the panic word "crash".
Bitcoin dropping from $3,000 to $1,800 over a period of one month is not a crash, it's a correction.
Even if we witnessed price drop to the lower support trendline at $1,300 (I find highly unlikely, but possible) it would still be in a strong uptrend.
As I have mentioned previously, as bitcoin achieves certain key levels, it will not return to them ever again unless we see a more dominant coin in the future.
The main purpose of this post is to highlight the key price structure within the market, refer to this chart whether you're going long or short.
To those trading over the next two weeks, stay safe and make smart investment decisions.
Note
Price has formed a valid bullish three drives pattern on the 5m chart, indicating a move to $2364.If we break and close above the 0.786 retracement level price will continue to $2550-$2600.
Note
Perfect reversal in-between the 0.618 and 0.786, expecting further declines.
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