Chart Pattern Analysis Of Bitcoin
Updated
https://www.tradingview.com/x/Kfr7HDsI/
K2 and K3 is a strong bullish up-thrust pattern with an up gap.
But K3 is not strong enough to close upon the resistance.
And the supply pressure at K3 is still at high level.
So, I don’t think K3 will reverse the short-term downtrend immediately.
It needs more signals to verify it.
If K4 close upon the resistance or the downtrend channel,
I will try to find opportunities to join the bull market.
On the other hand,
The decreased volume means the supply pressure is decreasing.
It is an early signal that the short-term downtrend had been interrupted by K3.
Perhaps it will consolidate for days and then choose to price up or fall down.
K2 and K3 is a strong bullish up-thrust pattern with an up gap.
But K3 is not strong enough to close upon the resistance.
And the supply pressure at K3 is still at high level.
So, I don’t think K3 will reverse the short-term downtrend immediately.
It needs more signals to verify it.
If K4 close upon the resistance or the downtrend channel,
I will try to find opportunities to join the bull market.
On the other hand,
The decreased volume means the supply pressure is decreasing.
It is an early signal that the short-term downtrend had been interrupted by K3.
Perhaps it will consolidate for days and then choose to price up or fall down.
Note
After the bullish candle K2,
K3 still failed to close upon the resistance.
The bullish momentum had been interupted here.
The decreasing volume also verified the short-term downtrend.
It seems that the market will keep dropping to test the lower price area of K1 or K2.
If K4 still stand upon 60K, perhaps it will test the resistance for a second time.
If K4 close below K2, the risk will increase.
Note
K3 is a second test to the potential resistance,
The supply pressure or demand keep decreasing.
The decreasing volume from K1 to K3 verified the short-term downtrend.
It seems that the resistance is still in effect to stop K3 obviously close upon the resistance.
So, it is likely that the market here will take more time to decide where to go next.
Note
From K1 to K3,
It is a bullish morning star pattern.
It seems that the supply pressure had been totally absorbed by the bull force.
It is a good signal for a potential bull market.
But I still need more signals to decide to join the market or not.
The bullish momentum must be verified by the following candles.
If the following candles keep climbing up to close upon 64K,
I will try to buy in.
Note
K3 break up the downtrend line and tested the resistance for a first time.
It failed to close upon the resistance.
It seems the supply pressure had not been fully absorbed temporarily.
It needs more signals to find out where the market will go next.
If the following candles successfully fall back to test the downtrend line,
Or close upon the resistance immediately.
It will be a potential good place to buy in.
Note
The market failed to stand upon the downtrend line,
K2 is a first test to the potential support.
The supply pressure is still at high level.
It seems that the market needs more days to consolidate here,
And then choose to break up or fall down.
The problem for the bull force is lacking enough demands.
If the following candles successfully close upon K1,
It will be a good place to buy in.
Note
K3 break down the previous downtrend channel under increasing volume.
It verified a fact that both the supply and demand pressure keeps at high level.
K1 to K3 is a bearish three sliders advancing pattern,
But unfortunately, it failed to close below the support.
It seems that the support at 59K is solid.
So, it is likely that a larger scale consolidation is on the way,
Or, another bull run will start from K3.
This is a first good place to establish a tentative long positions at K3.
If K4 close upon K3 immediately,
It is also a potential good place to increase long positions.
Long-59040/Stop-58300/Target-70000
Trade closed: stop reached
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