Updated

Bitcoin reversal? Wait for $$6605 Confirmation

Hello traders,

If you recall from my technical analysis using Bitcoin short yesterday, I predicted that we will see imminent breakout. And few minutes ago we saw inverse head and shoulders pattern breakout with good volume!!
So what is the game plan here? You see, $6.6K was a major resistance for almost 2 weeks, and I will be really surprised if Bitcoin will not go back to $6.6K and confirm as a support. Additionally, $6.6K is 38.2% fibonacci level, so my next entry point will be around that area and observe the market behaviour.
If Bitcoin manages to find support at $6.6K, then $7.1K is on the table.

Happy trading!

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No need to get in right now. There is a bearish divergence in 5 mins chart. There will be bearish short term trend reversal.

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Bitcoin potentially found support at $6628. However, I am still not very convinced of this breakout YET! I re-entered my position when I saw double bottom at $6628, but I am preparing for 3 different scenario

1) Bull break (20% chance)
The volume of inverse head and shoulders breakout was convincing and volume keeps declining after the initial breakout. This is usually the good indication for another breakout and target is $7100.

2) Cup and handle (40% chance)
$6800 is the next major resistance, and from what I have seen in recent Bitcoin movement, this level will most likely to be rejected and form a cup and handle pattern.

3) Bear breakout: (40% chance)
SEC have until tomorrow to decide on the Proshare's bitcoin ETF, and I feel like the recent pump was due to this hype. If SEC decide to reject the ETF again, we will most likely have bear trend. If Bitcoin goes below $6628, I am shorting my position.

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Also: this is just a cool thing to mention.
BITCOIN TRADING VOLUME REACHED ALL TIME HIGH LAST WEEK!

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Yup, scenario 3 is taking place. $6255 is acting support for now, and it seems like Bitcoin tested $6500 briefly and confirmed that $6500 is a the resistance.

Currently we are seeing indecision doji, and market does not know how to react to it.
I think we should test $6500 in next few hours or day again, just re-confirm that it is the resistance. If we see further drop, then next support will be $6200, followed by $6050.

There will be plenty of swing trade opportunities while the market is this volatile, so perhaps it is time to practice bear market swing trade strategies that I posted earlier this week :)

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I will be posting new idea later today, but I just want this idea out before the posting. We just had blue trendline breakout but volume is clearly lacking. I would expect Bitcoin to touch trendline again before the next move.

Note

x45lu

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x45lu