Is bitcoin price creating another inverse head & shoulder?I see another possible inverse head & shoulder... coupled with declining volume... does that mean a breakout upwards soon? Or will it go down?
Btcudst
I did tell you! How to Trade Bitcoin 101!Well... it played out pretty nicely!
As mentioned in my previous post, we were expecting the bounce to meet resistance between 10.2-10.4k. The bulls tried REAL hard to get it through the .236 fib line and the previous support/resistance level. It nearly got to 10.5k which I didn't quite expect and was slightly nervous with the short opportunity for me coming in at 10.4 but there was just nowehere near the volume needed to break through and then we saw a BIGGG volume sell off between 7-11am UTC.
There was a big time immediate sell off at 7 UTC which tanked the price down to 9.5k (how amazing as a trader that our most stable asset can move 8% of it's $180bn market cap in less than an hour!). The bulls then pushed it back to 10.1k at the close of the 1h candle. We then saw further sells taking it down to the magical .382 fib level. This is a really key level and we are seeing it be tested as support. Other than closing a short from 10.4k, I would advise monitoring here as there's a chance it gets a bit choppy. We need to see if the support continues to hold so I'd be patient with this one and let the trade come to you. Keep monitoring volume, but i'd expect .382 to be tested a few times and ultimately for it to break when the volume is strong enough.
I know I know... it's blasphemy to say you want BTC to retrace down, but if we are thinking long term this is what we need. IF we see a retrace to .500 (or even .618) then we are looking at a lovely bullish setup in mid-March!
Good spike if price goes above 9kPrice did not react really strong to the supply zone at 9k. Price could go really high if it goes above 9k
BTC Blood Path - The AftermathFirst of all I would like to apologize for the bad quality of my current chart due to how much I feel exhausted.
However This is a wild shot forecast for the expected BTC market next move after today's blood path which cam as a result of the Chinese authorities latest decision which is related to Chinese based exchanges regulations.
In this one I count on what I like to call (Market's Memory) and The Human Psychology which has a great effect on the market future movement, and in doing so I'm neglecting everything we know about fib levels etc.. .
According to MHO, I believe we almost found the new support for BTC (within $3,100 - $3,200 range) according to the past strong support points BTC was showing before the latest price surge which began a month ago (Market's Memory), yet a confirmation is needed to test if this theory is right (hopefully) or wrong.
Disclaimer: The market predictions and ideas I post are of my point of view and depends on what I see (according to the market strength and prices movements), it's subject to human error/price manipulation. Trade carefully, do your own homework.
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