BITCOIN / USD DAILY CHART: CLEAR VIEW OF LATEST MARKET DYNAMICS
Updated
I have been struggling hard to show the latest of the Mother of Cryptos since my work at LVMH Group has been exhausting. At the moment I have been accumulating positions on Bitcoin since February and it turned to be a pretty interesting time at the crypto markets.
Supply began to fade out as Q4 2018 lows went volume weak, RSI was yelling for you to spot the divergences... after that, demand came in to reach an early stage of resistance zone around $4,200 - $4,350.
Then came a false test to the same area on the 6th January 2019 and then came that giant red candle on the 10 th January taking down Bitcoin 10 %, speaking of which, experts would have noticed about the weak volume that day compared to other days on which price went down even less leaving a bigger trace of volume behind, meaning bulls were still there. Our friends the whales thought it was time to start the period of accumulation... This was so much confirmed when a falling wedge was drawn on the chart and price broke out on the 8th February setting a higher low for the first time since October ´18.
After the breakout price had to test an intermediary resistance around $3,750 and a bullish flag developed. This area between $3,700 and $3,800 is part of a major apex on which price bounces up and down within this big range. This apex is commonly highlighted by Wyckoff enthusiasts and it is very relevant. Breakout of the flag sent the price to test again the highs from the $4,220 - $4,300 resistance zone , before plunging another 10 % on the 24th February.
Bitcoin hit the apex on the 27 th February low, which was very close to the 61.8 % retracement from the 8th February low to the 24th February high. Realizing that the 24th February high made the RSI slip above the 80 level (meaning very high chances of a new high / double top ) an easy-to-spot long call was about to take place... resistance switching to support on a major apex which turns to be a 61.8 % retracement too. PRICE ACTION SIGNAL CONFLUENCE... BOOM !!
So here´s where we are at the moment: First day of the penultimate week of March, we notice demand begins to fade out since volume for the uptrend decreases. The possibility of a double top on the next test to the highs seems very reasonable. At this stage we shall observe the way candle patterns develop and how strongly bears push down at the $4,220´s zone vs. bulls withstand and defend the major apex support over $3,800.[b/]
PAY HEED TO: Bitcoin has been going through higher lows ever since the crackdown from the $19,800´s. It will just be the next big thing if during the Spring we start again having a series of higher highs & higher lows once again !!!
Once I gain more reputation I would like to share an image of trader girolamoaloe of a bullish Wyckoff cycle so you guys can check the similarities on the BITFINEX:BTCUSD chart. Accumlation seems very reasonable, meaning a strong reversal could take place soon.
Wish you the happiest week and trade responsibly !!!!
Mikephicc
Supply began to fade out as Q4 2018 lows went volume weak, RSI was yelling for you to spot the divergences... after that, demand came in to reach an early stage of resistance zone around $4,200 - $4,350.
Then came a false test to the same area on the 6th January 2019 and then came that giant red candle on the 10 th January taking down Bitcoin 10 %, speaking of which, experts would have noticed about the weak volume that day compared to other days on which price went down even less leaving a bigger trace of volume behind, meaning bulls were still there. Our friends the whales thought it was time to start the period of accumulation... This was so much confirmed when a falling wedge was drawn on the chart and price broke out on the 8th February setting a higher low for the first time since October ´18.
After the breakout price had to test an intermediary resistance around $3,750 and a bullish flag developed. This area between $3,700 and $3,800 is part of a major apex on which price bounces up and down within this big range. This apex is commonly highlighted by Wyckoff enthusiasts and it is very relevant. Breakout of the flag sent the price to test again the highs from the $4,220 - $4,300 resistance zone , before plunging another 10 % on the 24th February.
Bitcoin hit the apex on the 27 th February low, which was very close to the 61.8 % retracement from the 8th February low to the 24th February high. Realizing that the 24th February high made the RSI slip above the 80 level (meaning very high chances of a new high / double top ) an easy-to-spot long call was about to take place... resistance switching to support on a major apex which turns to be a 61.8 % retracement too. PRICE ACTION SIGNAL CONFLUENCE... BOOM !!
So here´s where we are at the moment: First day of the penultimate week of March, we notice demand begins to fade out since volume for the uptrend decreases. The possibility of a double top on the next test to the highs seems very reasonable. At this stage we shall observe the way candle patterns develop and how strongly bears push down at the $4,220´s zone vs. bulls withstand and defend the major apex support over $3,800.[b/]
PAY HEED TO: Bitcoin has been going through higher lows ever since the crackdown from the $19,800´s. It will just be the next big thing if during the Spring we start again having a series of higher highs & higher lows once again !!!
Once I gain more reputation I would like to share an image of trader girolamoaloe of a bullish Wyckoff cycle so you guys can check the similarities on the BITFINEX:BTCUSD chart. Accumlation seems very reasonable, meaning a strong reversal could take place soon.
Wish you the happiest week and trade responsibly !!!!
Mikephicc
Note
I finally managed to make things actually clear lol sorry for the last post !Trade active
Long call to the $ 4,200 still on. Considering the low volume during this tip-toe steps towards the highs it is more likely than ever that a push down from the bears will take place soon.
Expecting divergences on oscillators.
Note
Si we finally reached the highs 4,200’s and at 9:00 am UTC+1 daily candle looks like an inverted hammer. Divergences clearly bearish on oscillators (PPO & RSI), expecting an upthrust and then a reversal to a 38.2 % or 61.8% retracement to the $ 3,750 level.Note
This was so wild!!! So much demand during the last 3 days took it up to 5K !!! So here we are now:the breakout at the $4,200 resistance clearly meant the price went over the creek. So, we shall expect supply to come flowing between today and tomorrow to make a visit to the creek again, a good test at the supports which people trading futures could take real advance of. Will keep on refreshing analysis with images later on !
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