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Tactical retracement is a next stepMorning everybody, So, our first target of 12,4K mostly is done and market stands at solid resistsance now - major 5/8 Fib level, daily overbought (blue line) and Agreement as upside 1.618 AB-CD is hit. (for those who familiar with DiNapoli technique - in fact we have DiNapoli bearish "Stretch" and Kibby trade setups at once). In such sircumstances odds suggest a pullback. There are two Fib support levels that we intend to keep an eye on - 11K which is 3/8 and 10.3K of 5/8 Fib supports. As usual, on intraday charts we're watching for AB-CD shape down, to identify where particular retracement will be over and "222" Buy pattern will appear. Once technical retracement will be done - our next target is 15.3K, as we've discussed in our longer-term view previously. Currently we do not consider any bearish trades as they are too small for our updates and mostly watching for bullish setups. But it is not forbidden to make scalp shorts of course...
COINBASE:BTCUSD
by Sive-Morten
12400...15300...Morning guys, As we've said last week - breakout of 10K area opened new trading range for the market where it stands now. Today we put weekly chart, because it forms the background for 1-2 months of trading. Last week was bullish grabber (by DiNapoli terms), which means that BTC should take out previous top. As we have all time COP target around 15.3K - this is most probable nearest destination point on weekly chart. In shorter-term perspective we have our upside AB=CD pattern. Our OP at 11.3 is reached, the next short-term target is XOP @12400$. As BTC stands at 5/8 resistance, chances on pullback, somewhere to 11-11.3K exist. If we will get, say, "222' Buy" we could take the long position. Any short position right now meets hihgher risk until price stands above 9100$ lows. Take care. S.
COINBASE:BTCUSDLong
by Sive-Morten
1
Just brief update on BTCMorning everybody, It is a silence on the market as all eyes stand on Fed statement and its impact on FX and other market. As a result BTC mostly stands in the range of sell-off that has happened last week. Previously we've mentioned that BTC shows bearish action as it has broken normal market behavior that should follow on a background of daily morning star pattern but has not happened. Although price indeed has dropped - recent lows still stand valid. Now we do not have some clear and bright patterns that could shows us the direction. In such circumstances possible solution is to keep an eye on important levels. Thus, first one is daily lows, of course. Once they will be broken, downside action continues. But another important level stands on 4H chart. It splits two trading zones and market now is challenging it. If BTC fails to break it up, chances on downside breakout increases. Conversely upside breakout of this level suggests upside AB=CD action somewhere to 11.3K area. Potentially we could get large "222" Sell pattern. While we do not have clarity, it is better to sit on the hands.
COINBASE:BTCUSD
by Sive-Morten
Intraday bullish setup has failedMorning folks, Market confirms our suspicions on weakness, as even last week we had doubts on upside perspective as BTC was not able to show adequate reaction on our 4H reverse H&S pattern. Now price drifts even lower and almost erased daily "Morning star" pattern. Although theoretically pattern is not failed yet as BTC stands above its lows, but price action is irrational for bullish market and probably it is a question of time, when market will drop further. Thus, we do not see yet good context for long entry. For short entry there are two ways - wait for bearish pattern and use stop Sell entry order slightly above the Morning Star lows. 8.5K is daily oversold, so we could use it as short-term floor. Our long-term view suggests that major retracement should be over in IIIQ, i.e. BTC should reach our major target of 6.4-7.2K area. Then major long-term trend should start. We think that starting of ICE Bakkt trading could become a catalysts of this process.
COINBASE:BTCUSD
by Sive-Morten
It's all about right arm's lowsHowdy folks, hope you're OK, Let's keep up with our H&S pattern on 4H chart. Market finally has appointed the bottom of right arm and technically setup becomes simple. Now it is difficult to say whether upside AB=CD retracement will happen or not. Personally, I'm tending to bearish view as we expect dollar supportive as GDP data today as Fed statement next week. Theoretically this should trigger downside continuation of our major daily retracement. Still, if you have bullish view and want to buy, you could act against recent lows. This is perfect invalidation point that lets you to place tight stop. Bears should wait either H&S completion by upside AB=CD action, or, downside breakout of recent lows, which be first signal of H&S failure and drop below the head. Now few words on our long-term view. Our recent analysis of market sentiment (you could read it if you want on our website) tells that BTC should turn to bullish trend in IIIQ of 2019 and breakout point will be ICE Bakkt contract. This is not because of Bakkt itself but because of breakout in BTC regulation as Bakkt will become a culmination moment of agreement between investors, regulated exchange trading and regulation authorities (CFTC and NFA). This is a green line for institutional investors and will be turning point for whole cryptocurrency market. IT means that our major retracement on weekly chart should finish within 2-3 months with reaching 6500-7500 area. We treat this area as suitable for long-term investing. But now, let's see what we will get on GDP today and Fed next week.
COINBASE:BTCUSD
by Sive-Morten
Tricks around H&S patternMorning guys, So, yesterday it was a bit dramatic action around our culmination area - bottom of right arm. As you know, that was not due some market factors but external intruding. D. Trump and Congress adopt new debt ceil for US national Debt, which was increased and should be sufficient for ~2 years. That was positive factor that supported USD. Thus, BTC/USD has shown the same reaction. As a result we have following things. Market stands not too far from the perfect point of right arm's bottom and recent drop was mostly due external factors. But... we have bearish reversal candle on 4H chart, on 1H chart we have just ordinary harmonic swing reaction to the point where major reversal had to happen. Drop down stands with acceleration (and 3 black crows, right?). Thus, overall siuation now stands not as friendly as it was yesterday. If you already have longs, you could try to close it with minor upside pullack to entry level @9850 (or keep them if you have different view on situation). Bears could step in soon, if BTC will continue dropping. If you do not have long position - wait for upside breakout on 1H channel and action above 10K area. All these scenarios are still possible as BTC has not leaved yet equilibrium area, but probabilities stand a bit different with a bit more in favor of downside continuation.
COINBASE:BTCUSD
by Sive-Morten
Make your decision - we're at 9850$Howdy folks, Let's step out a bit from long-term suggestions and focus on our tactical setup that we have. Yesterday we've discussed reverse H&S pattern on 4H chart and now it comes to culmination point. Right arm's bottom is almost completed. Thus, if you plan to go long - that's your point where you have to make a decision. On 1H chart we could see the whole process of appearing of right arm. Market is forming perfect AB=CD pattern which agrees with major 5/8 Fib support. CD leg could be finalized by puny butterfly "Buy". What else do we need? Bottom of the right arm is very informative point. Market has to turn up there to keep up with H&S or, downside continuation, tending to the bottom of the head will tell us that H&S is failing and we should reverse position. This is classic setup for trading any H&S. That's being said, for bulls - take long position around 9850$. If no signs of upside reversal happen and price continues downward action to 9400-9500 - reverse position down. Bears should wait the same.
COINBASE:BTCUSD
by Sive-Morten
Reaction on 9K targetMorning guys, BTC shows response on major daily 9K target, which is also strong Fib support area and former oversold level. Now we could recognize Morning star candlestick pattern on daily, which takes the shape of reverse H&S on 4H chart This is common thing. Thus, within 2-3 sessions we will deal with this pattern. As usual, those who wants to go long - keep an eye on right arm's bottom with stops below the head, while bears should wait when H&S hits the target. AB-CD upside pattern will give us "222" Sell.
COINBASE:BTCUSD
by Sive-Morten
Be aware of 8970$ targetMorning guys, As we've discussed medium-term perspective yesterday, today we pay attention to minor thing, technical price action around major target. Depsite that our AB=CD journey to 9K area mostly is done - BTC has not quite reached the target yet, as it stands at 8970$ area, but started upside action. We want to warn you - if you consider long entry by some trading plan - be aware of this level. As a rule, markets very rare leave behind major targets. Despite minor upward action right now, it is a big risk of return back and finalizing of AB=CD. On 4H chart we also have DiNapoli bearish grabber, that suggests drop below recent lows. This is the only thing that we want to say today. So, if you plan to go long - place your initial stop either below 8970$, to not been washed out by final downside leg, or wait when target will be totally completed.
COINBASE:BTCUSD
by Sive-Morten
1
Beyond 9000$...Morning guys, So, yesterday setup is done perfect, market stands in few bucks from 9000$ major daily AB=CD target. But today we want to talk on medium-term perspective... what's next and what we see from recent price action. If we pay some attention to details then we could recognize strong bearish efforts. Indeed, as yesterday as two days ago - sell-off was so strong that BTC has paid no attention to Oversold condition (blue line is DiNapoli Oscillator Predictor, showing OS area). Combination of strong K-support area (despite it has been tested once earlier) and Oversold was not able to hold price and BTC has pressed it down anyway. The same story repeats yesterday. Depsite oversold BTC was tendning lower, showing tail close candles and coming to major target. Once AB=CD will be completed, we expect some retracement as usual. But when BTC calms down a bit and leave Oversold, we suspect that next 1.618 AB-CD extension appears on horizon. It is too strong downside pressure right above the major target. Very often it leads to downside continuation later. Besides, this continuaiton to major 5/8 Support around 7K area totally corresponds to our long-term view of major retracement. Thus, as soon as technical response on 9K target will be over, we keep door open for another leg down.
COINBASE:BTCUSD
by Sive-Morten
1
Watching for downside continuationMorning everybody, So, upside bounce that we've suggested yesterday is done. Now we have to match the facts. Such combination as uncompleted major targets at 9680 and 9000$, downside acceleration on daily chart and reaching of strong resistance on 1H chart (BTC is not at oversold on daily any more). Upside harmonic swing is done as well. Thus, if market still stands bearish, this should be enough for downside continuation. Breaking 1H resistance area and move above consolidation doesn't match to bearish market and it changes short-term sentiment.
COINBASE:BTCUSD
by Sive-Morten
1
9700...9000...Morning guys, So, our 11K-12K ping-pong trading plan has done perfect. The H&S pattern that we've discussed on Thu is almost done. Due to the solid drop on Friday, BTC stands oversold on daily chart and at the same K-support area. As a result, it is difficult to count on immediate downside continuation. Nearest target is H&S AB=CD at 9700. BTC could try to reach it despite OS condition on daily, as it stands relatively near. Then we expect small pullback, as respect of target and to leave uncomfortable daily Oversold area. Our major short-term target is large AB=CD @ 9K. (8970 to say precisely). Now it is not good area to take new short position. Wait for pullback.
COINBASE:BTCUSD
by Sive-Morten
2
To 11K then to 12K and then we will see ;)Morning everybody, So, reversal setup around 13.12K predefined area has worked perfectly. Thanks to JPowell negative comments on Libra, BTC has got downside acceleration. Still, on the daily chart we do not cancel totally idea of upside butterfly, at least until price stands above 10K area. Today - tomorrow we're mostly focused on tactical price action. Our H&S is done perfect, and now market is coming to 11K 5/8 Fib support area. Here, on 1H chart you also could recognize direct H&S pattern - head and left arm are already in place. The last detail that we miss is right arm - and it could be formed by upside bounce to 12K area.
COINBASE:BTCUSD
by Sive-Morten
The moment of truthMorning everybody, So, it seems our yesterday suggestion was correct and BTC perfectly (almost) completes as 1H H&S pattern as 4H AB=CD. Also you could recognize minor butterfly "Sell" on CD leg of this pattern. I said "almost" because target stands slightly higher, around 13.1K area. But this is minor detail... What is really important - what will happen next. We have two possible patterns, as we've said already. Either it will be upside butterfly to major 15-15.3K target, or larger daily downside AB=CD (as it is shown on the picture). And what pattern it will be depends on current point. Thus, today, we're watching for reaction on 13.12K target. This is moment of decision for bears, as it is most comfortable point for taking short position. Also price is flirting with MACDP inidicator line. If bearish grabber will be formed it adds more confidence with downside action. Conversely, moving above 13.12, coming closer to previous top tells that market will show upside breakout and upward action continues.
COINBASE:BTCUSD
by Sive-Morten
Upside chances increasesMorning folks, Last week we talked on two possible ways of major retracement - either in the shape of wide AB=CD pattern or extended H&S pattern. And we said - keep an eye on price action inside triangle. If BTC will not break it down, or stops downside action by some reason - be careful. It could be early signal of possible upside continuation. This has happened. Although it doesn't totally cancel AB=CD pattern down, making it a bit wider, but it definitely tells that BTC has no intention to go down right now. Here you could recognize some shape of reverse H&S pattern. It means that some upside leg should be formed, at least AB=CD, forming "222" Sell on daily. Ultimately BTC could continue upside action right to our major weekly target of 15.3K, forming butterfly "Sell" on daily chart. Currently we see that situation is not attractive for taking short position.
COINBASE:BTCUSD
by Sive-Morten
1
Dual way of major retracementMorning folks, We conitnue our journey with major retracement on BTC market. The price shape points that usually retracement takes two most common directions. First scenario we already have considered, and it suggests AB=CD downside action first to ~9K area then pullback and second CD leg to 7K area. Thus, it will be big AB=CD, based on weekly shooting star pattern. Second way starts equal, but later turns to triangle and leads to appearing of upside butterfly, which later becomes a part of huge H&S pattern. On weekly chart all-time 0.618 AB-CD extension stands around 15.3K, and if we consider butterfly on daily, it has 1.27 extension precisely around 15K area. Downside reversal that we've suggested two days ago is started. And now we have important task - identify the way of retracement. Here we need to keep an eye on 10-10.2K area. If market suddenly stops there and turns up again, starting to form triangle - it means that we're on the second way and be prepare to 15K rally. Normal downside continuation, drop below 10K and folloing our 3-Drive "Buy" pattern on 1H chart confirms 1st way of retracement. So, don't relax and keep an eye on 10-10.2K area ;) Plan your trades accordingly depending on type of the retracement that we will get.
COINBASE:BTCUSD
by Sive-Morten
1
8800-9000$ is still on the tableMorning, guys So, yesterday's factors were really strong, deadly combination for the bears of daily K-support and oversold. As a result our suggestion on pullback seems to be correct. But, still, we treat it just a reaction on daily oversold, but not as starting of new upside swing. Mostly because bearish pressure stands strong, and two days ago market ignored strong intraday levels. This is not normal for bullish market. These thoughts leads us to conclusion that before major upside bounce on daily chart, we should get another swing down first to complete major OP target of AB=CD pattern. The same butterfly that we've discussed yesterday could finalize this action as its 1.618 extension also stands there. On 1H chart this action to take the shape of 3-Drive "Buy" pattern as well. Thus, our suggestion now is downside continuation to 8970-9000$ area and then major upside bounce on daily. As we do not intend to trade BTC short right now, we do not worry too much on the shape of downside action, as we're mostly watching for bullish opportunities. We keep an eye on downside action to control its shape and identify levels where it could finish.
COINBASE:BTCUSD
by Sive-Morten
3
Bounce is possible but we keep in mind 8900-9000$ areaMorning everybody, It is difficult to express in one post the whole picture that we see. It would be better if you watch the video, where we cover all time frames... Market ignores strong technical issues. Yesterday it drops deeper in oversold and broken through intraday K-resistance area. Now BTC stands at major daily K-support and OS area as well. On intraday charts our "222" Buy turns to Butterfly. Odds suggest minor pullback, 30% maybe a bit more. As we have downside AB=CD target around 8900$, after pullback downside action should continue. This area also will be 1.618 butterfly extension. As soon as it will be reached - price will complete huge weekly evening star pattern and the first leg of our predefined retracement. Second leg should follow to 6500-7000 area as we've suggested. As we do not trade BTC short right now and mostly wait for strategical point to go long, we do not care much on the shape of retracement. It is possible probably to do some scalp long trades, based on shown butterfly as well but we wait for strategical point. If you would like to go long right now, you should understand the risk, because bearish pressure is very strong as market drop despite oversold. Odds suggest no short position as market at daily Oversold and strong K-support area.
COINBASE:BTCUSD
by Sive-Morten
Odds suggest tactical upside bounce todayMorning guys, While we keep our long-term view intact and now it is really good chances that recent huge spike on weekly chart is a starting point of the retracement that we're waiting for, today we take a look at short-term perspective. As sell-off was rather fast, last week we've suggested that some downside continuation should happen in a shape of AB-CD pattern and this has happened. At the same time market right now has limited downside potential, because on daily chart it stands at strong Fib K-support area and daily oversold. So, this is not good point to go short. Odds suggest upside bounce. Thus, on 4H chart we have '222" Buy that could trigger it. It is good chances that downside action continues this week but market needs few days to leave Oversold area. For bears - sit on the hands and wait for pullback, while bulls could consider this "222" Buy, but do not treat it as continuation of long-term bull trend. Depending on the shape of upside bounce, we make conclusion on further action and the patterns that could be formed this week. As usual, on our website you get the video on all time frames analysis.
COINBASE:BTCUSD
by Sive-Morten
1
Retracement starts... Tactical or strategical?Morning guys, So, as we've said last time - we go from one major resistance to another and nearest was major 5/8 on weekly around 13500$. It has been hit. We do not consider right now our major target here of 15.3K, just because it stands beyond weekly Overbought and we do not need it for few weeks probably. As a result we've got DiNapoli bearish "Stretch" pattern here on weekly, as combination of Fib level and OB and huge shooting star pattern. Thus retracement stands on horizon. But the question is - whether this will be major retracement to 6-7K$ that we're waiting or tactical? For major retracement some extended bearish reversal pattern has to be formed either on daily or 4H chart and we will keep an eye on it. Meantime, as we've got huge bearish engulfing pattern on daily, we could count on AB=CD pattern somewhere to 8.8-9K area. Now BC leg is forming. Thus, for short entry - watch for intraday "222" Sell pattern at some Fib level. For long entry on daily chart, it would be better to wait at least until major AB=CD action ends. So long entry is not the subject of this week.
COINBASE:BTCUSD
by Sive-Morten
13500 and 15300$ are next targetsMorning guys, It seems that we have to show our longer-term view, because not everybody watching our videos on FPA website. Our previous updates stands at daily and below and doesn't show total view. In fact our trading plan consists of two parts. Longer-term, strategical one suggests two things - major retracement and take long-term investing on BTC market. This retracement should happen sooner rather than later and take 50-60% of recent upside action. Thus, speaking on current levels, retracement should be somewhere to 6-7K level. Definitely it should happen from important resistance level. And here, on weekly, we try to recognize the levels where retracement could start. Now on the table we have two of them - major 5/8 Fib level around 13500$ and all time AB-CD COP (0.618) target at 15300$. Thus, nearest level that we're wathcing is 5/8 Fib resistsance. Besides, BTC comes close to weekly Overbought. Second part of the plan is tactical - to see what we could do on lower time frames. Now, as market has broken 50% level and we have very good thrust as on daily as on 4H chart, we could watch for DiNapoli B&B "Buy" trades, i.e. bullish momentum continuation trades around 3/8 support levels. They are relatively safe and let to ride on a rally till next resistance level which stands 1000$ higher...
COINBASE:BTCUSDLong
by Sive-Morten
10100-10200 is next tactical targetMorning everybody, Our 3-Drive "Sell" that we've discussed last time on daily was disrespected by BTC market and has not triggered any major retracement. But this is doesn't change the core of our major trading plan. Sooner or later but major retracement will start, this is just how market works. Our suggestion - once it starts it should reach ~6500$ area. Trading plan now stands as follows. We estimate next potential upside target on daily and once it has been hit, we watch for reaction, whether retracement starts or not. If not - we estimate next upside target. Now, next level stands relatively close - 10100-10200 area. This is AB=CD target and 1.618 extension of previous retracement (you could treat it as butterfly "Sell" as well). So, let's see what will happen there...
COINBASE:BTCUSD
by Sive-Morten