BITCOIN extends its bearish trend. Our options on the short-term
Bitcoin (BTCUSD) had yet another strong 4H red candle, consistent to the past two hard selling sequences since the August 15 High. Today's post is an extension to the short-term analysis we made a few days back.
** The selling patterns **
As mentioned, the time-frame here is the 4H (4hours). As you see, since the price broke above the former Triangle, it failed to stay above the 4H MA50 (blue trend-line) and eventually yesterday made that strong 4H sell-off. The common characteristic with the previous two selling patterns that were within the Triangle, is that it did so when the price broke above the Higher Lows trend-line (bold dotted lines) that was supporting until then.
** Fibonacci targets **
The target yesterday was once again the 1.618 Fibonacci extension as with the previous two sequences. If a new Higher Lows trend-line emerges, then in line with the previous sequences, we should be expecting an upwards consolidation that could reach the 1.236 Fib.
** The former Lower Highs trend-line supporting **
What's really interesting is that since BTC broke above the former Triangle, its Lower Highs trend-line has been tested twice (including yesterday) and held. Can that turn into a Support and provide a new trend? Well this is the short-term and we have to keep looking into it and the every-day changes on indicators continuously. If that former Lower Highs line breaks, expect another flash crash, this time to test the ultimate Support level of the 1W MA300 (yellow trend-line).
** Neutral zone, Break-out Buy and a very consistent RSI **
We consider the range within the 4H MA50 and the 4H MA100 (green trend-line) as neutral space, thus a 'no-trade zone'. On the other hand, consider buying if the price closes above the MA100 and target the 4H MA200 (orange trend-line).
Among the fuss, just check how well-structured the 4H RSI has been, with a clear Higher Lows line providing a solid buy entry and a Resistance providing a sell.
So do you think Bitcoin is up for yet another Higher Lows consolidation until it breaks downwards again or an MA100 break will save the day? Feel free to share your work and let me know in the comments section below!
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** The selling patterns **
As mentioned, the time-frame here is the 4H (4hours). As you see, since the price broke above the former Triangle, it failed to stay above the 4H MA50 (blue trend-line) and eventually yesterday made that strong 4H sell-off. The common characteristic with the previous two selling patterns that were within the Triangle, is that it did so when the price broke above the Higher Lows trend-line (bold dotted lines) that was supporting until then.
** Fibonacci targets **
The target yesterday was once again the 1.618 Fibonacci extension as with the previous two sequences. If a new Higher Lows trend-line emerges, then in line with the previous sequences, we should be expecting an upwards consolidation that could reach the 1.236 Fib.
** The former Lower Highs trend-line supporting **
What's really interesting is that since BTC broke above the former Triangle, its Lower Highs trend-line has been tested twice (including yesterday) and held. Can that turn into a Support and provide a new trend? Well this is the short-term and we have to keep looking into it and the every-day changes on indicators continuously. If that former Lower Highs line breaks, expect another flash crash, this time to test the ultimate Support level of the 1W MA300 (yellow trend-line).
** Neutral zone, Break-out Buy and a very consistent RSI **
We consider the range within the 4H MA50 and the 4H MA100 (green trend-line) as neutral space, thus a 'no-trade zone'. On the other hand, consider buying if the price closes above the MA100 and target the 4H MA200 (orange trend-line).
Among the fuss, just check how well-structured the 4H RSI has been, with a clear Higher Lows line providing a solid buy entry and a Resistance providing a sell.
So do you think Bitcoin is up for yet another Higher Lows consolidation until it breaks downwards again or an MA100 break will save the day? Feel free to share your work and let me know in the comments section below!
--------------------------------------------------------------------------------------------------------
Please like, subscribe and share your ideas and charts with the community!
--------------------------------------------------------------------------------------------------------
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