Pure Price Action Analysis on Bitcoin and Possible Breakout
Updated
To determine how the Market Maker has been playing in the market, I've decided to use pure price action analysis. The triangle used is just for a visual representation on levels for breakout. What I want to emphasize on here is the price action; you can see that during the previous downside from 20k to 11k, there was a lot of squeezes and a battle between the shorts and longs. A lot of stops were being hunted by the MMs (you can check this out for an even clearer illustration on the Bitfinex chart where most of this happened).
During the previous downside, the extreme stops (12,500 range) were targeted two times until it opened the possibility a momentum breakout trade. In this downside, Bitcoin just experienced a similar move where the extreme stops were hunted two times. (10,000 range)
What can you do?
- Be very patient, a breakout should always be confirmed by a retracement so you guys can confirm an entry position.
- If the breakout fails, an even stronger down move may occur where you can put stop losses at the 9285 level (the lowest price level it got to/the wick). Downside target could be the 1.618 level just like how the the first downward move played out.
Follow me so you get notified for more updates from me. I focus on market cycles of cryptoassets, position and momentum trading.
Good luck! Contact me at twitter.com/rexyfayed
During the previous downside, the extreme stops (12,500 range) were targeted two times until it opened the possibility a momentum breakout trade. In this downside, Bitcoin just experienced a similar move where the extreme stops were hunted two times. (10,000 range)
What can you do?
- Be very patient, a breakout should always be confirmed by a retracement so you guys can confirm an entry position.
- If the breakout fails, an even stronger down move may occur where you can put stop losses at the 9285 level (the lowest price level it got to/the wick). Downside target could be the 1.618 level just like how the the first downward move played out.
Follow me so you get notified for more updates from me. I focus on market cycles of cryptoassets, position and momentum trading.
Good luck! Contact me at twitter.com/rexyfayed
Note
Take a look at the Stoch RSI. Bottomed out and already curving upwards. Do not use indicators as a primary basis for your trades though, just something to support price action. Price action still has to be the number 1 indicator.
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