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Forexpeacearmy

8000-8145$ to tight stops and book some profitMorning guys, Just minor update. BTC is approaching to our first target - H&S AB=CD pattern, based on the head and the shoulder. It stands at 8145$. Be careful around 8K area, because this is also daily 3/8 Fib resistance. So, some turbulence could appear around and reaching of the target could be choppy. Once target will be hit - be prepared to downside pullback. Ultimate target of H&S should be around 8.9K, which agrees with another daily Fib resistance. But whether BTC will go there or not we could say only when we see how market will react on first target...
COINBASE:BTCUSD
by Sive-Morten
1
Additional 7.4K area for long entryMorning guys, It is no need to make big update today as our major pattern is valid, BTC gradual creeps to the neckline and we keep an eye on its breakout. Those who has missed our major entry but still consider taking of long position could think about 7.4K area on 1H chart. Touching of neckline of daily reverse H&S right before its breakout hardly will trigger deep retracement, but some minor pullback is possible. And this minor pullback could be right to 7.4K - combination of two Fib levels from different swings (DiNapoli calls it as Confluence support). If we will get AB-CD type retracement there and small "222" Buy - all the better. That's all that we would like to add today. Let's see what will happen with our H&S pattern...
COINBASE:BTCUSD
by Sive-Morten
3
Riding on the H&S patternMorning guys, Hope you're well after the Holidays. So - our AB-CD downside retracement to 6.9K area is done, giving us "222" Buy on 4H chart, which is actually a part of daily H&S pattern. Currently our task is clear - 6.9K is a bottom of the right arm and BTC has to hold it - to keep bullish scenario valid. Thus, if you have taken long position at 6.9K - now you could move stop to breakeven and watch the movie. Based on H&S our target is 8.3-8.4K area - near major daily 5/8 Fib resistance level. If you have missed long entry - today you could consider 7.1K 1H support area to do this. Conversely, if H&S will fail - it means big failure of bullish context on daily/weekly basis and downside continuation, somewhere in 4K area. But our sentiment analysis of the market tells that chances on this scenario are not very high... Detailed analysis you could watch in the video on our website.
BITFINEX:BTCUSD
by Sive-Morten
4
Still watching for 6850-6900 areaGood morning, Last time we consider downside AB-CD pattern a bit different shape but with the same target. As BC leg becomes more extended, we change the shape of the pattern a bit, but still watching for the same 6850-6900$ area. From technical point of view it creates comfortable level for long entry because of 5/8 Fib support, AB-CD target. Besides, once AB-CD will be completed we will get "222" Buy" pattern in place and right bottom of reverse H&S pattern on daily chart.
COINBASE:BTCUSD
by Sive-Morten
2
6850$ to consider long entryMorning guys, As we've suggested upside bounce from 3/8 support was really great, and there was minor reverse H&S formed but it has not turned to real upside continuation, as price of BTC has dropped back to the level. It makes us think that we would better to consider for long entry Agreement of AB-CD target and major 5/8 support at 6850-6900$ area. This level, by the way could become the right bottom of daily reverse H&S pattern. Also we keep our experiment with Hash Ribbon Indicator that shows mining capitulation periods based on Hash rate level. Today it gives "buy" signal. You can see it in our video on FPA website. If our suggestion is correct, then downside AB-CD action should give us "222" Buy pattern on daily as well.
COINBASE:BTCUSD
by Sive-Morten
2
Retracement to 7.2-7.3$ areaMorning guys, Last week I was confused a bit by price action, as Bitcoin has shown behavior absolutely irrational in relation to our daily major XOP target. This was a reason why we've suggested a bit deeper drop and appearing of butterfly pattern, thinking that XOP is not done yet. As I found out - Coinbase provides not accurate quotes which leads to unproper aplication of technical tools, so I've turned to Bitfinex and by its quotes our XOP has been completed even on first downside spike two weeks ago... As a result, on Friday, market has hit our intraday 4H target of 6.5K area, grabbing stops below recent lows and jumped up. Now we do not exclude appearing of double bottom on daily chart. Its potential target stands around 8.6-8.9 - major daily 5/8 resistance area. But, we will go step by step. As first upside action is done and now market stands at 3/8 daily resistance level, today we expect pullback to 7.2-7.3K area
BITFINEX:BTCUSD
by Sive-Morten
6200-6300$ area first...Morning guys, As we've said in last report - 6800 support will be vital for direction of the market. BTC has failed the test and dropped below AB-CD target and major 5/8 support area. It means that odds suggest further downside action. Now, we consider daily butterfly and our untouched XOP target - this is approximately 6200-6350 area. Then we will see what will happen there. If reaction again will be weak, it gives us reasons to consider weekly AB=CD with 4K destination point.
COINBASE:BTCUSD
by Sive-Morten
Watching for 3-Drive progressMorning guys, This update is better to combine with previous one, as here we discuss just the final moment of our setup. Last week, we said, that 6940 area is the one that will be very important for BTC. Breaking of this level down will open road below daily lows while upside bounce could lead not just to simple retracement but, ultimately to extended upside action. At the same time, if you have bullish view and search setup for long entry - here is the one to consider. 6940 is Agreement of our downside AB=CD target and 5/8 Fib support, now we have 3-Drive "Buy" around as well. All this stuff makes it interesting for taking long position. If even market will stay bearish, it should show some pullback out of this level at first touch. This lets us to move stops to breakeven and significantly decrease chances to get loss.
COINBASE:BTCUSD
by Sive-Morten
7000 is a key point to considerMorning guys, Price action is lazy on BTC market this week. It seems that ivestors are too busy with classic FX, stock and gold markets as a lot of trading setups are forming there right now. Anyway, let's see what we could get here in nearest time. Our triangle indeed has been broken down, but action stands slow, which tells that it is more the retracement of recent upside swing than downside continuation. As a result we could consider potential "222" Buy" pattern around major 7K Fib support. This level set next direction, that's why - bulls could consider long entry around 6850-7000$ with potential target around 8.3-8.5K based on "222" Buy pattern. bears have to wait either for breakout of mentioned area down or wait until upside target 8.3-8.5K will be reached. It would be better to not anticipate the breakout of this level and do not take short position in advance.
COINBASE:BTCUSD
by Sive-Morten
BTC UpdateMorning guys, BTC is forming two inside weeks in a row which makes us gravitate more to bearish scenario. Usually, markets shows fast reversal when stops are grabbed below recent lows. But now it is a bit different case. Market shows sideways action, which could be the sign that we're just at retracement. On daily chart we also have bearish dynamic pressure and our major 6378$ target on daily chart for a few bucks but has not been completed. In general BTC is forming triangle consolidation which keeps chances for both directions. Still, taking in consideration things above, we gravitate more to bearish view, as I said, and possible butterfly "Buy" pattern with 6150 target. If you have bullish view, it would be better to wait for upside breakout of trianlge and recent tops. In this case butterfly will be cancelled.
COINBASE:BTCUSD
by Sive-Morten
3
6900$ is to considerMorning guys, Situation stands a bit tricky. Despite our 3-Drive "Buy" setup has worked perfect - following reaction with fast drop mixes the context and doesn't provide clear answer what we should do and in what direction trade. We have as bullish as bearish patterns in place. Bullish is the DiNapoli grabber that suggests upside action above recent top. It seems hardly possible but take a look at price action in circle - there was the same "Evening star" and grabber after it, which pushed price higher. Bearish sign - is Evening star itself, which suggests downside drop. In current situation I would consider large downside AB=CD pattern to 6860-6900 area and possible butterfly "Buy" that could be formed here. If BTC will hold above major 5/8 Fib support and formed both patterns - this will be sufficient context to make attempt to buy. Conversely, bears should wait for downside breakout of all this stuff. In this case we could get large daily downside butterfly...
COINBASE:BTCUSD
by Sive-Morten
7040-7060 potential "Buy" areaMorning guys, Our short-term trading plan is focused on major 5/8 Fib support, which should be reached by our view. This stuff we've discussed yesterday. Now we have new details here, on 1H chart and think that BTC is forming 3-Drive "Buy" pattern, which agrees with our major support level. Thus, bulls could consider long entry around 7040-7060 area. As soon as (and if) market will show first response to support - don't forget to tight stops at breakeven. Bears probably should sit on the hands by far and be patient, as they need downside breakout of the major support, which suggests 3-Drive failure.
COINBASE:BTCUSD
by Sive-Morten
7000 is the key levelMorning guys, Indeed, market has made an attempt to climb higher, but was not able to reach our XOP target around 8.3K area and daily retracement (aka B&B "Sell) has started. The minimal target of this retracement is 7K - major 5/8 Fib support level. This level has special role in short-term perspective. Potentially, this level is the one that bulls should consider for long entry. At first touch theoretically it should provide minimal protection and price response which will be enough to move stops to breakeven. Holding above 7K will make possible large upside AB=CD pattern to ~8.5K area. Our H&S pattern is not valid any more as price first - has reached minimal target, second - dropped now below neckline. If this level will be broken, I mean 7K - BTC will drop back to the "A" point and challenge recent lows. So, this level is important for bears as well. Right now we do not see any valuable bearish setups...
COINBASE:BTCUSD
by Sive-Morten
Riding on retracementMorning guys, Today situation stands a bit more difficult and gives chances to go in both directions. Yes, yesterday's trade was good, but let's not fall in euphoria as there were setups when I was totally wrong :) As you understand this is all about probability. It is too much to write, and it would be better if you watch the video, but I'll try to to keep it short here. Now we stand at daily 3/8 resistance. Potentially situation is suitable for the trade that could reach at least 6960 5/8 Fib support. But the problem is - we do not know exactly whether it will start or not, because the point where it could start differs. That's why we have to keep an eye on market reaction in this resistance. If price will stuck between neckline and strong 7170-7235 Support area - BTC will keep chance to proceed higher to XOP target which is ultimate H&S destination point - 8230$. If this level will be broken - be prepared to drop at least to 6960, but ultimately below recent lows. Depending on your view, you could take following trades: For bulls - grab profit on recent trade. If you do not want to close - move stop higher, at least below 7170 level. Watch for entry around 7300-7350 with stops below 7170. For bears - you could try to go short with initial stop above the recent top, but move stops to breakeven as soon as possible when market will extend retracement. Neckline should be re-tested, I suppose. Then whatch what will happen around 7.2-7.3 area. If market will not break it down - close the trade or out at breakeven stop. In general upside momentum recently was not bad, and chances on upside continuation exist.
COINBASE:BTCUSD
by Sive-Morten
7680Morning guys, Our scenario stands in progress - daily XOP around 6.4K mostly is completed, BTC has finalized downside action by 4H butterfly "Buy" pattern that we've mentioned yesterday. This pattern also should be the background for traders who intend to take long position. Now we have first upside reaction in place. If you've missed this chance - don't upset too much, here is another one. Our butterfly could become a part of reverse H&S pattern. If you still want to go long here - consider 6850$ level which is AB=CD target and major 5/8 Fib support (i.e. DiNapoli Agreement). Potentially this is also the right arm bottom where BTC could start upside extension. H&S target is 7680$ area. If market will not turn up again from 6850$ and start dropping lower - this will be bad sign, suggesting breakout of recent lows.
COINBASE:BTCUSD
by Sive-Morten
6
Few dry numbersMorning guys, So, our daily XOP 6.3K target mostly is hit as well. This is vital area for long-term BTC perspective. If market will not able to hold above 6.3-7.2K Agreement area (agreement of 6.3 target and major 5/8 Fib support) - it turns to downtrend on weekly. So: Drop below 6.3 and moving toward 6K will mean that we're going to 4.2K Drop below 4.2K will lead us to ultimate all time target around 1.8-2K If price will able to hold above 6.3-7.2K - BTC will keep chances on upside continuation but it needs some tome to wait when clear bullish patterns will be formed. In short-term (in few hours), bull scalpers could try to take long position around 6.3K area, because at least minor pullback should happen, I suppose. Move stops at breakeven as soon as possible. Use 4H butterfly "Buy" for this purpose. Bears that do not have any position right now should do nothing - wait for pullback.
COINBASE:BTCUSD
by Sive-Morten
1
Watching deeper...Morning guys, Two days ago we've said that while BTC shows no reaction on relatively strong OP target of 4H AB-CD pattern - it means that it will go to XOP around 7.3K. Now this destination mostly is done. We do not have any other targets on intraday chart and could take a look at broader picture, which is daily time frame. Here we have old target that we've specified few months ago which is also XOP but from daily AB-CD pattern and it stands around 6.4K area. Recent drop is important not because it has reached 7.3 level but because It has erased recent rally, which makes strong bearish effect as technically as pshychologically. Now we will not look too deep, but focus on nearstanding destination which is our XOP target. Also this target agrees with lower border of the channel and 1.27 extension down of Mr. Xi rally. Thus, if BTC will show some minor upside reaction on 4H XOP target - we could get 1.27 Butterfly "Buy" here. In current circumstances we do not see any reasons to go long. If you would like to take new shorts - wait for upside pullback and bearish patterns (say, "222" Sell") on 1H chart
COINBASE:BTCUSD
by Sive-Morten
Moment come - nothing has happenedMorning guys, Market finally has hit our OP target. Last time we've talked about signs that market has to show, if it is really bullish. They were suggesting upside reaction on combination of 5/8 Fib support and OP target. Conversely, no reaction and drop below OP we've agreed to treat as bearish sign. Thus, you could make conclusion by yourself as overall picture is rather clear by our view. BTC shows no reaction on OP + 5/8 Fib level target and opens road to the lows where we have next XOP target. Drop to XOP could trigger chain reaction of breakouts as reaching of XOP suggests erasing of Mr. Xi's rally. Which, in turn, open road to daily $6.35K target. Once Xi rally has happened - we've called to not fall in euphoria but wait and see. Time tests any politician statement (recall Trump, for instance) and BTC has failed this test. Maybe situation will change, but now we do not see any bullish signs - no patterns, no bullish performance, positive reaction on support, nothing...
COINBASE:BTCUSD
by Sive-Morten
Almost there...Morning everybody, So, market follows to our suggestion of more extended downside action and we gradually is coming to culmination point - 8325 major AB=CD target, which stands slightly below major 5/8 Support area. This level is crucial for short-term term direction, because bullish market should turn up from there as technical support of Fib + target is strong enough. Conversely, drop below the target without any response tells us that something is wrong with bullish sentiment. Based on this simple logic bulls could watch for upside reversal patterns here (such as a butterfly that we've put here). Once any will be formed - it is possible to make attempt to buy. Stop should be placed by the pattern. Bears should watch for opposite thing - downside breakout of 8.3 K area and erasing of bullish setup. In this case chances on total reversing of the Xi rally will be significantly higher.
COINBASE:BTCUSD
by Sive-Morten
Minor update Morning guys, Here is the situation when details are important. Today we focus on short-term situation. As you can see on the chart our secondary AB=CD pattern is completed, while primary AB-CD (red letters) is not yet. Its OP target stands around 8.3K area. So, I would ask you - how do you think, whether it will be completed, or not. And where bull scalpers should consider long entry here? Here is my suggestion... Take a look that we have downside action, while MACD trend shows up. This is the situation that called as "bearish dynamic pressure" by DiNapoli framework. In this situation odds suggest the new lows, at least. And it makes me think that major OP target probably will be reached. Hence, if you consider long entry - wait a bit more, at least until OP will be hit.
COINBASE:BTCUSD
by Sive-Morten
2
8.3-8.5K short-term vital areaMorning folks, BTC gradually is coming to the target that we've specified last week. In fact here we have two major AB-CD's but their targets stand relatively close to each other. Top AB-CD (red letters) has OP target around 8.3K area, slightly below major 5/8 Fib support, while another AB-CD pattern has OP target precisely at the level. This level is very important, because it will act like a test. If BTC indeed stands in bullish mode, and Xi rally is real upside reversal - price should not erase this rally. Thus, breakout of 8.3K area and drop back to 7.2K lows could put bullish perspective under question and open road to 2K major target on weekly chart. But this is long-term story... So, what we could do in short term. If you have bullish view and search chance to go long - this 8.3-8.5K area is the one that you could consider. But you have to control two things. First is - you have to avoid long entry if nasty black candle will be formed, and this level will be broken by some fast action. Second - once you take long position, move stop to breaven as soon as possible. Because this is "test" level and we do not know what will happen. It might be just technical respect of support, but not upside rally continuation. Here I also draw a butterfly, just as example of bullish reversal pattern that you could use for entry. It is not the fact, of course, that precisely butterfly will be formed here... but it could... For bears - wait for breakout of this level down. Now it is not time yet to act.
COINBASE:BTCUSD
by Sive-Morten
2
Let's check the bullishnessMorning guys, Sorry for silence, but actually it was nothing to comment here. The triangle that we've discussed last time indeed was broken up, but this breakout appeared to be very short-term. We need to check the bullish ambitions of the market. Shortly speaking long-term perspective stands in direct relation to Mr. Xi rally. If BTC will able to keep it - it will continue upside action to 15K and above. If not and Xi's rally will be erased - first target is our daily XOP around 6.4K. Thus, in short-term perspective our task is watch for retracement. Now we have different AB-CD patterns here, one of them I draw on the chart. Market is forming "222" Buy pattern. Our checkpoint is ~8.5K 5/8 Support level which agrees with AB=CD target. This is potential level for long entry as well. 30% bounce should happen at least. If BTC will keep falling under 5/8 Fib level, coming back to the bottom and erasing of Mr. Xi rally - this will be bad sign. For those who want to know how all this stuff involved in long-term view - you could watch the video on our website. S.
COINBASE:BTCUSD
by Sive-Morten
Upside continuation looks more probable nowGreetings everybody, Well, we put no comments for few days here, just because it was nothing to comment. After revolutionary Mr. Xi words market has frozen in flat action, forming triangle consolidation. While we do not see any superb content in Mr.Xi words that could be worthy of such a rally that we saw - it has happened anyway. Now we suppose that market shows indirect signs of positive mood. The fact that these rally has not been reversed fast and market stands near the top for second week, forming a kind of pennant consolidation makes us think that upward breakout is more probable. We are not sure that it will be major upside reversal yet, but price could move slightly higher on a momentum of Xi rally. The only problem here that we do not have any other patterns/tools except this triangle. Thus, if you intend to take a position (at any direction), now you could do it inside the triangle with placing stop outside of it. Everybody has to think twice, whether this context sufficient for trading...
COINBASE:BTCUSD
by Sive-Morten