Bitcoin / TetherUSUpdated Bitcoin 4 strong resistance lines + a large bearflag /HS
Bitcoin 4 strong resistance lines + a large bearflag / large head and shoulders formation
Good evening dear friends,
I have made a new analysis for Bitcoin but the last one is still perfecly valid so best look at them both. Here you see a 12 hours chart and there are a few remarkable things here.
First, the concentrated point where no less than 4 trend lines meet. The top of the bearflag, a downtrend line, the top of the bearish wedge and the very important 1,618 fib level. We also already saw that the Rsi and Stochastics made negative divergences and also a declining volume can be seen during the rise. As a matter of fact, the volume itself is also making a bearish divergence as it was falling while the price was rising.
3 possible scanarios.
1. Bitcoin breaks through resistance at 42500 after a minor correction and this is obviously very strong and very bullish. Buying can be done on a retest of this level or immediately for the breakout traders. Note that there should be above average volume and a strong green candle.
This would imply that all negatives are just invalid which would be unlikely unless there is intervention by the big funds and banks who want the price of Bitcoin to go up.
2. Bitocin corrects to 32500 - 34500 then rises again and starts to take a new attempt to break through resistance.
3. Bitcoin sinks to 29556 which is immediately the bottom of the bearflag. We are not that far yet so at that point we will look again at where it may go and which new patterns are formed.
If we zoom out, we still see the very large bearflag which is also the right shoulder of a main shoulder formation (formed from January until now!).
This should not be discounted as the bearflag was formed over a period of almost 3 months. Bitcoin has also has broken the bearish rising wedge and it has 31110 as its target. The RSI has peaked and even made a negative divergence.
China's central bank reaffirmed for the second time that it wants to ban Cryptos because it poses a danger to citizens due to the high volatility and also the high power consumption for Bitcoin mining. On top of that, the world leaders want to regulate crypto currencies so everyone has to be registered. People who cannot prove where their capital comes from will have a huge problem! Especially the latter is a very dangerous point for Bitcoin and cryptos in general.
This is because a lot of capital is just anaonymous right now. Can you imagine what will happen with the price if this regulation will come in force?
What will happen now for the short term will become clear in the coming days and weeks. Bullish on a breakout above 42500. Below that, keep an eye on how far Bitcoin can correct based on the Fib levels and reversal patterns. If Bitcoin drops below the 28800 low, the chances of a further bull market are almost zero.
It is impossible to say exactly what is going to happen and what scenario it is going to be because this has to be validated with the price trend. Based on the price movement, we can then take action. In this market, make sure you have close stops because that's how things can go wrong and that way you can limit any loss.
--- > In this market I advice to use tight stops. <---
Please share your thoughts and idea's below dear friends. What do you think and why do you think it with or without a chart.
I wish you all good luck with trading!
Disclaimer This is my view, no advice to buy or sell. Also always do your own research!
--->> Dear friends please follow me for updates and give me support with a like 👍 if you like me to continue this work. Thanks 💚
Please check this out also because it is part of this analysis too:
Good evening dear friends,
I have made a new analysis for Bitcoin but the last one is still perfecly valid so best look at them both. Here you see a 12 hours chart and there are a few remarkable things here.
First, the concentrated point where no less than 4 trend lines meet. The top of the bearflag, a downtrend line, the top of the bearish wedge and the very important 1,618 fib level. We also already saw that the Rsi and Stochastics made negative divergences and also a declining volume can be seen during the rise. As a matter of fact, the volume itself is also making a bearish divergence as it was falling while the price was rising.
3 possible scanarios.
1. Bitcoin breaks through resistance at 42500 after a minor correction and this is obviously very strong and very bullish. Buying can be done on a retest of this level or immediately for the breakout traders. Note that there should be above average volume and a strong green candle.
This would imply that all negatives are just invalid which would be unlikely unless there is intervention by the big funds and banks who want the price of Bitcoin to go up.
2. Bitocin corrects to 32500 - 34500 then rises again and starts to take a new attempt to break through resistance.
3. Bitcoin sinks to 29556 which is immediately the bottom of the bearflag. We are not that far yet so at that point we will look again at where it may go and which new patterns are formed.
If we zoom out, we still see the very large bearflag which is also the right shoulder of a main shoulder formation (formed from January until now!).
This should not be discounted as the bearflag was formed over a period of almost 3 months. Bitcoin has also has broken the bearish rising wedge and it has 31110 as its target. The RSI has peaked and even made a negative divergence.
China's central bank reaffirmed for the second time that it wants to ban Cryptos because it poses a danger to citizens due to the high volatility and also the high power consumption for Bitcoin mining. On top of that, the world leaders want to regulate crypto currencies so everyone has to be registered. People who cannot prove where their capital comes from will have a huge problem! Especially the latter is a very dangerous point for Bitcoin and cryptos in general.
This is because a lot of capital is just anaonymous right now. Can you imagine what will happen with the price if this regulation will come in force?
What will happen now for the short term will become clear in the coming days and weeks. Bullish on a breakout above 42500. Below that, keep an eye on how far Bitcoin can correct based on the Fib levels and reversal patterns. If Bitcoin drops below the 28800 low, the chances of a further bull market are almost zero.
It is impossible to say exactly what is going to happen and what scenario it is going to be because this has to be validated with the price trend. Based on the price movement, we can then take action. In this market, make sure you have close stops because that's how things can go wrong and that way you can limit any loss.
--- > In this market I advice to use tight stops. <---
Please share your thoughts and idea's below dear friends. What do you think and why do you think it with or without a chart.
I wish you all good luck with trading!
Disclaimer This is my view, no advice to buy or sell. Also always do your own research!
--->> Dear friends please follow me for updates and give me support with a like 👍 if you like me to continue this work. Thanks 💚
Please check this out also because it is part of this analysis too:
Note
Bitcoin is on the way to 35500 as a first target. The fundamentals are not so good at the moment with China indicating its intention to ban Bitcoin for the second time this week. A lot of Chinese people are trading Bitcoin! Then the regulation to ban anonymous Bitcoin accounts. What do you guys think will be the effect on the long awaited bull run with new tops? Personally, I see a big problem there unless it is resolved and the way is clear. Unfortunately, that is not the case right now.What do you guys think about the above? Will the market rise nicely or will it stumble and fall? Please share your opinion as it is appreciated!
Note
Forming of the right shoulder of a bigger HS formations possible that will happen ...Dear friends
2 scenarios could happen. Please note these are hypothesis!
Scenario 1
Price rebounds up to the green neckline at 39000 and continues down to the target of 34379.
Scenario 2
Price breaks through the green neckline and invalidates the first HS formation but then forms the right shoulder of the orange HS formation.
The target would then be 32125.
Interestingly, in scenario 1 This is the 0.618 fibonacci level and in scenario 2 it is the 0.786 level.
If price goes under the 0.786 we will be heading to the old low.
This happens sometimes with the formation of HS formations. You can see that by the 2 necklines which are crossing.
So again these are my ideas and of course it can fail as everything can fail in TA.
Note
Check also here dear friends!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.