Bitcoin - Third Time Lucky Has The Answer!
Updated
Being a full time trader, time is a luxury I can afford. Aside from reading books and materials related to my sole occupation, I like to observe the market and come up with patterns or techniques of my own. I have learned to always take a step back every time I get too engrossed with a particular market analysis technique. Never be too dependent on a single technique - be it Gann, Elliott Wave, Wyckoff etc. By drafting different techniques into a chart in various time frames from scratch (absent bias), we get to see a bigger picture of the puzzle. If all those techniques agree on a singular outlook of the trend and target range, then we know that we have a high probability "lock-on".
One of the common things I have noticed from my market observation is that it takes three attempts to breakout from a trend line in any direction most of the time. I called this beginner technique "Third Time Lucky" and is best applied to longer term charts. New traders will find it very easy to use. The rules are simple:
1. Every third breakout attempt from a trend line has the best odds to succeed.
2. A valid attempt is one that touches the trend line or must be in close proximity with it.
As an example, I have applied this technique to the Bitcoin chart above.
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One of the common things I have noticed from my market observation is that it takes three attempts to breakout from a trend line in any direction most of the time. I called this beginner technique "Third Time Lucky" and is best applied to longer term charts. New traders will find it very easy to use. The rules are simple:
1. Every third breakout attempt from a trend line has the best odds to succeed.
2. A valid attempt is one that touches the trend line or must be in close proximity with it.
As an example, I have applied this technique to the Bitcoin chart above.
Please LIKE and FOLLOW if you enjoy my post. Thank you.
Note
Despite the triangle (6,000 psychological barrier) was breached, it has yet to be invalidated as price refuses to move lower due to overwhelming buys. If price can climb back above 6,000 for another hour, we can expect a reversal.Note
Price quickly recovered to above 6k. The breakout below the triangle has failed. This means Third Time Lucky and the triangle are still "valid".Note
Once the price stabilizes around $6,000 and above, we can expect a sideways trend that slowly moves to the green trend line. A retest on that green trend line is what we want to see.Note
For the past 14 hours or so, we have been trying to break the resistance (blue line) level and in the process formed a bullish triangle. We should be seeing an upward thrust upward to 6400 area where another seller wall has been formed. I believe bitcoin is ready to test the green trend line at around lower 6500.
Note
The upward thrust was met with fierce sellout by the market majority that wants to push price lower than what was already all time low this year. Perhaps the invalid second attempt on the tangerine trendline ($6000) should have been taken into account after. Nevertheless, a breakdown from the triangle means previous Wyckoff chart is in full effect. To view that chart, please click below:
Note
I know that many people are now questioning whether Bitcoin is doomed. When a typical dip like this happen, it is important to keep a cool head, re-assess the situation and determine our next course of action.In my previous Wyckoff chart titled "Bitcoin Analysis - Textbook Case of Wyckoff Downtrend to $4,800", I have clearly illustrated the possibility of a bearish continuation that would put Bitcoin down to $4800. This dip we are seeing now is not something "new "or "unexpected".
Given that the triangle has now been invalidated, I will post all my new updates through my Wyckoff chart. See you guys there.
Note
I will honor requests and post new updates here as well. From what I am seeing, $5800 key support level remains strong. I am more overwhelmed by the buyers' appetite than the sellout pressure right now. As I have said earlier, we are ready to "buy the dip" at lower levels but until $5800 breaks we should not rule out a potential reversal that might thrust us back into the triangle above $6000 and possibly higher. This market can flip anytime and when that happens, its movement can be extremely fast.Note
And that's the flip I was telling you, boys and girls. We are officially back in business.Note
Updated Chart (click to enlarge):
Note
As the second breakout attempt (#2) on the tangerine trend line has failed, we can see that price is slowly moving up to meet the green trend line. This would be our third breakout attempt on that trend line so there is a good chance that we might breakout from it.Note
Hi friends! Here is today's update on BTC. We are approaching a key resistance level where the bull might have trouble penetrating given the lack of volume. If the bull fails, the bears will seize this opportunity to claw price down to retest the regional lows of $5,755 again. Here is an illustration of the BTC 4-Hour chart of what might happen.Note: I would be cautious and wise to pull out of this market at this level for the time being and re-enter at lower levels. That's all for today. Happy trading everyone!
Trade closed manually
Since this is more of an educational post, I am ending all future updates pertaining to BTC trend development to avoid unnecessary confusion that might arise. This would be my last update to this chart. If you want be kept in the loop about my forecasts, I encourage you to FOLLOW me and check out my latest charts without the "Education" tag.
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