Bitcoin crossed it's main resistance thus making new S/R
Hello Everyone,
As I said in my previous analysis that bitcoin either will do a correction downwards which it did but not that much which I expected so after doing some correction it crossed its major resistance which was at 11400 levels ( I plotted parallel trendline in that area ) and I also drew some small uptrend channels which bitcoin has tested before and I was sure it will test those channels again if it goes uptrend or makes new highs. I would also talk about oscillators and momentum indicators which diverged before which is mainly short signal but according to me momentum indicators can be an unreliable indication as of now you have seen MACD has diverged recently but the price did not come down a lot of people were hoping about so if any of you guys are using oscillators or momentum indicators to short/long positions, I would strongly suggest relying on stop loss because high leverage can cause capital loss, you guys are only trading on futures.
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Yesterday Bitcoin made a new height so I drew a parallel resistance from that point and other parallel supports and resistances as you can see in the chart. Support and resistances were good nevertheless as I mentioned in my previous idea support and resistance become opposite once they are violated. Channel line can be of huge help in the future in determining trends and making internal supports and resistances which the price has experienced before so as you people can see in the chart I drew some uptrend channel lines which are being effective now. The price currently is testing the second channel I made and it has tried to cross it several times but failed even now the price is at the resistance level of the uptrend channel and if it crosses it and closes above the channel it will move from the second channel to the first channel that I made whos resistance is uneven because it has only touched once by the previous peak and never again so it can make a new high again thus making it a persistent resistance or it can bounce back from the resistance of the second channel that I made thus giving us a short sign with a stop loss just 3% up from the resistance and first take profit which will be at the middle of the channel and another 2 take profit of 25% which will be plotted mentally.
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Ichimoku Components -
Kijun - REDLINE
Tenken - BLUELINE
Senkou A - Upper Border of cloud when the trend is bullish and Lower border of cloud when the trend is bearish
Senkou B - Upper Border of cloud when the trend is bearish and Lower border of cloud when the trend is bullish
Chikou - The green color shadow of price moving 26 period back
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According to the ICHIMOKU trading system, the price still is in a bullish trend and it has 4 supports to cross so if it crosses Kijun that means it has crossed two supports which are Tenken and Kijun (that has not happened yet) so there could be 2 scenarios there would be a dump and price would cross Kijun when Tenken is above it thus giving us a weak signal of short or it would correct itself slowly and then there would be a crossover of Tenken and Kijun in which Kijun will be above the Tenken so it will give us a short signal and stop-loss would be at 3% higher than Kijun that will be also considered as a weak short signal because the price would be above the Kumo cloud and if there is any other activity of ICHIMOKU trading system I will update the idea automatically.
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If you like my idea do give me a follow and if am wrong at some point in this idea, tell me comments :)
As I said in my previous analysis that bitcoin either will do a correction downwards which it did but not that much which I expected so after doing some correction it crossed its major resistance which was at 11400 levels ( I plotted parallel trendline in that area ) and I also drew some small uptrend channels which bitcoin has tested before and I was sure it will test those channels again if it goes uptrend or makes new highs. I would also talk about oscillators and momentum indicators which diverged before which is mainly short signal but according to me momentum indicators can be an unreliable indication as of now you have seen MACD has diverged recently but the price did not come down a lot of people were hoping about so if any of you guys are using oscillators or momentum indicators to short/long positions, I would strongly suggest relying on stop loss because high leverage can cause capital loss, you guys are only trading on futures.
`````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````
Yesterday Bitcoin made a new height so I drew a parallel resistance from that point and other parallel supports and resistances as you can see in the chart. Support and resistances were good nevertheless as I mentioned in my previous idea support and resistance become opposite once they are violated. Channel line can be of huge help in the future in determining trends and making internal supports and resistances which the price has experienced before so as you people can see in the chart I drew some uptrend channel lines which are being effective now. The price currently is testing the second channel I made and it has tried to cross it several times but failed even now the price is at the resistance level of the uptrend channel and if it crosses it and closes above the channel it will move from the second channel to the first channel that I made whos resistance is uneven because it has only touched once by the previous peak and never again so it can make a new high again thus making it a persistent resistance or it can bounce back from the resistance of the second channel that I made thus giving us a short sign with a stop loss just 3% up from the resistance and first take profit which will be at the middle of the channel and another 2 take profit of 25% which will be plotted mentally.
`````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````
Ichimoku Components -
Kijun - REDLINE
Tenken - BLUELINE
Senkou A - Upper Border of cloud when the trend is bullish and Lower border of cloud when the trend is bearish
Senkou B - Upper Border of cloud when the trend is bearish and Lower border of cloud when the trend is bullish
Chikou - The green color shadow of price moving 26 period back
`````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````
According to the ICHIMOKU trading system, the price still is in a bullish trend and it has 4 supports to cross so if it crosses Kijun that means it has crossed two supports which are Tenken and Kijun (that has not happened yet) so there could be 2 scenarios there would be a dump and price would cross Kijun when Tenken is above it thus giving us a weak signal of short or it would correct itself slowly and then there would be a crossover of Tenken and Kijun in which Kijun will be above the Tenken so it will give us a short signal and stop-loss would be at 3% higher than Kijun that will be also considered as a weak short signal because the price would be above the Kumo cloud and if there is any other activity of ICHIMOKU trading system I will update the idea automatically.
`````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````
If you like my idea do give me a follow and if am wrong at some point in this idea, tell me comments :)
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