Get started

SIVE

4340-4440 pullback?Greetings, So, yesterday we've mentioned strong daily resistance area that includes AB-CD target, Fib level and daily Overbought. Normally, market should react and show at least 3/8 pullback. It means that current area is not good point for taking long position immediately and bulls should wait a bit. Taking short position in current circumstances is a real challenge and could be expensive journey. Still, if you decide - wait for clear pattern on intraday chart and place stop somewhere above daily Fib resistance and overbought level. Right now we see only "222" Sell on 30-min chart. As a target you could use our 4340-4440 strong intraday support area. But, most interesting thing is a durability of this rally. Whether this is new bulltrend or occasional action that we saw previously many times. Time should answer on this question within 1-2 weeks probably.
COINBASE:BTCUSD
by Sive-Morten
Major Daily target is hit - at least 30% pullback should follow.Morning guys, So our yesterday suspiciouns and worries about preparing of upside breakout was not in vain. It has happened. Despite solid rally, it is not sufficient yet to change situation on weekly chart. Here, on daily our butterfly has been erased and BTC has completed H&S 1.618 AB-CD extension target. But, now price stands at major 5/8 resistsance, daily Oversold level and major AB-CD target, forming solid resistance cluster. Besides, we have "222" Sell pattern here, which suggests pullback at least to 30% Fib support. Finally, when such spikes happens, this is always a question of its durability. Last time, rally was short term and totally erased soon after few weeks of sideways action. Let's see what will happen this time. That's being said, we're watching for moderate pullback within few sessions, at least to 3/8 Fib support area around 4040$
COINBASE:BTCUSD
by Sive-Morten
4200 challenge?Morning guys, Although market has completed our major target for the week and 4085 extension target has been hit - we haven't got downside retracement on Friday that we've counted on. This moment, but not only this one, makes us think that BTC indeed could take the attempt of 4200 daily tops breakout. We see behavior that is not typical for normal bearish market. Daily Sell-off was very strong, forming bearish reversal session. Upside action on BTC was rather deep with breaking all Fib levels on a way up. But what is more important is market reaction on double target - 1.618 AB-CD and AB=CD at 4085$. In fact, we have "222" Sell pattern here. Now we do not see any bearish reaction at all. Market just coiling around and we treat it as building an energy before attempt of upside breakout. Taking all this stuff in consideration, despite that market hits major target and forms "222" Sell - it would be better to not go short until we get clear bearish signs and clear reversal patterns on intraday charts. For taking part in upside breakout, well there are a lot of ways to do it. One of them is to use stop "buy" entry order slightly above the daily top.
COINBASE:BTCUSD
by Sive-Morten
3950 is clue to short-term directionMorning guys, our H&S setup has done well and market has hit minimal AB=CD H&S target. Now, price stands at strong 4H support area and we expect upside bounce today. 3950 should become a signal area. Since this is neckline of H&S pattern - BTC could show upside retracement, forming AB-CD and "222" Sell pattern. But, to keep bearish sentiment valid it should not break above it. So this simultaneously entry point for bears and signal area for bulls. If, somehow BTC shows upside breakout of 3950 and keep going higher - it means that H&S is done and we are on the road to 4085$ target, which is still valid. If no surprises happen and BTC turns south around 3950 - watch for XOP target around 3770$
COINBASE:BTCUSD
by Sive-Morten
BTC updateMorning guys, Market shows contraction type of action and previous week was standing in very tight range. Last week we've discussed 1H chart H&S pattern. Since we have 1.27 type of H&S we expect higher top of right arm. At first glance, H&S almost stands in place (just take a look at our Friday's post), but the price action of right arm shows too slow and too gradual action that is not typical for H&S. It makes us think that we still have chances to see BTC around 4000 area in a shape of upside AB-CD retracement. Thus, bears have to look at two levels - 3915 is neckline. Once it will be broken it means that downside action has started, and ~4000$ - AB-CD target and potential top of right arm of H&S pattern. What to do if 4000 level will be broken up? Recall 4H large AB=CD with 4085 target. In this case we should get upside butterfly and reversal down happens by not intraday but daily pattern around 4100 area.
COINBASE:BTCUSD
by Sive-Morten
Tricky H&S patternMorning guys, BTC was not able to reach our 4085 target (at least right now) and dropped. Recent plunge creates potentially tricky situation when BTC leaves behind uncompleted targets. This is additional risk factors for bears as market could return and hit targets before real downside reversal. Thus our task is to eliminate or minimize the impact of this risk. On 4H chart (check previous update, guys), BTC was not able to complete butterfly erase it. Now we have H&S pattern on 1H. First step that we're watching for is deep upside retracement. We probably will get "222" sell around 4000-4030 area and it also will be top of the right arm. Here is just two ways for taking short position. Either do it right at the top of the arm with stops above 4090 (because targets still could be hit). If it is too much - wait when H&S will start to work and BTC starts dropping below neckline. It is not as attractive but safer.
COINBASE:BTCUSDShort
by Sive-Morten
Still watching for 4085$Morning guys, today we show the same scenario but at different scale - on daily chart. In recent 3-4 sessions market was standing quiet and doesn't show any action that could harm our trading setup. So, we're still watching for completion our AB-CD target on 4H chart around 4085$ As you can see here, on daily chart - this should give us '222" Sell pattern and downside continuation. Right now price action looks like flag or pennant consolidation which supports idea of upside continuation and completion of our AB-CD pattern. Bearish tendency will be broken only if market will climb above recent tops and break even theoretical chances on butterfly pattern.
COINBASE:BTCUSD
by Sive-Morten
4085-4100$ is next targetMorning guys, So, on Friday you could make shure how useful is high wave pattern. Our doubts on immediate downside continuation have been confirmed as BTC rallied up. Today-tomorrow we will watch how BTC completes the XOP target around 4085 area. Currently it seems that it could be done by butterfly "Sell". 4100 area is also important for higher time frames, because if market is still bearish indeed - it has to turn down from 4100. If this will not happen - be prepared to more significant rally on daily chart. As soon as BTC completes our 4085-4100 target - we will get "222" Sell pattern as on daily chart as on 4H.
COINBASE:BTCUSDLong
by Sive-Morten
All eyes on HWave patternMorning guys, This update needs to be combined with our previous chart of 1H H&S pattern. BTC action is becoming tricky because of too slow action after completing bearish patterns. As a rule, once bearish pattern is formed - trend accelerates down. But here we have another story, and situation on daily charts starts getting signs of bullish dynamic pressure. It means that chances on completing greater AB=CD pattern here are not zero, so we could get greater "222" Sell on daily around 4085$ area as I draw here. High wave pattern could help us a lot, especially because it becomes the top of the right arm of our H&S pattern on 1H chart that we've discussed recently. High wave is very useful pattern because its top and bottom point the direction once market will break it. And now we need to keep an eye on it. Action above the top of the HW pattern tells that 1H H&S probably fails and we're going to 4085 while drop below 3800 lows of HW confirms validity of bearish trend. Thus, bulls should wait upside breakout, while bearish - opposite action before taking position. Those who have taken shorts based on our 1H H&S pattern, now could move stops to breakeven.
COINBASE:BTCUSD
by Sive-Morten
3900$ again is the keyMorning everybody, So yeterday we said that now it's time to search setups for short entry. Yesterday market has climbed a bit higher and now it is easy to identify H&S shape here. It means that 3900 area - right arm top again will become the key. Upside breakout will mean H&S failure and upside continuation. Downside turn around 3900 suggests validity of bearish sentiment and downside continuation. So, this is the level where as bulls as bears will make a decision on position taking. We need just wait a bit, when market will be there.
COINBASE:BTCUSD
by Sive-Morten
3840 is a keyMorning guys, Situation on BTC changes slow right now. BTC has needed almost the whole week to complete our last target. In previous update we've talked about 4H "222" Sell pattern. Now finally it has been completed. In general market shows good background for short-entry, but we need to get a bit more confidence. Now, on 1H chart "222" Buy is forming and 3840 area is strong support. It is high probability that some upside bounce will happen. We need to watch how strong it will be. If BTC jump up and move above recent tops - it is not time yet to go short. Minor, 30% bounce up and following downside breakout of 3840 area means that bearish trend continues. Thus, we have multiple setups here. Scalptraders could work directly with "222" Buy, while daily traders search chances to go short - either against recent tops or after 3840 breakout using minor retracement.
COINBASE:BTCUSDShort
by Sive-Morten
3940-3980 is short term BTC targetMorning guys, Although BTC has dropped a bit after our last discussion, it has not broken previous lows but returned back to 3/8 Fib resistance and keeps chances to show deep upside retracement that we've expected to see initially. Still, this retracement happens by different pattern - not H&S that we've discussed, but possible "222" Sell. Now price stands tight under Fib resistance, forming pennant pattern, which suggests buidling of an energy before breakout. Thus, right now we expect AB=CD upside action to 3940-3980 major 5/8 Fib level and forming "222" Sell. After that we start watching for bearish entry.
COINBASE:BTCUSDLong
by Sive-Morten
Downward should start...Morning guys, If you remember last week we were mostly focused on intraday setup, because there are no question to overall context - by our opinion it stands bearish and we still think that BTC has to hit chain of targets, starting from daily 2800 and lower right to 1800-2000 weekly ultimate target. While on intraday chart there was minor question - how far retracement could go. Once market has formed butterfly we've talked about possible H&S pattern with 3980 target around 5/8 Fib level. Now, theoretically market still stands above the lows of left arm, but expect downside continuation by two reasons. First is, this is not the way how bulls should control the market with H&S pattern. Now pattern shows clear signs of failure. The action mostly reminds indecision rather than wide H&S. Second - "high wave" pattern inside the rectangle was broken down. Thus, we expect re-establishing of our daily bearish trend.
COINBASE:BTCUSDShort
by Sive-Morten
4000$ retracement is still on the tableGreetings, As soon as downside reversal has happened, we're watching for moderate retracement to get better price for short entry. Initially we've expected to get upside AB=CD pattern, but as soon as CD leg can't get started and turned to flat action, it becomes obvious that something different has to be formed. Now, with wash& rinse of recent lows, we've got potential reverse H&S pattern. Thus, upside retracement is still on the table, but with different patterns. We're mostly focused on short entry, so do not intend to trade it long, as our context stands on daily chart. That's why we're waiting for either 4000$ level and completion of H&S target, or... H&S failure Scalp traders who trades on 5-15 min chart could think on long position around right arm bottom.
COINBASE:BTCUSD
by Sive-Morten
4140$ is done - time to go short?Morning guys, On Friday we've missed a bit with downside retracement on 1H chart as BTC has not formed AB-CD pattern but turned up earlier. Still overall trading setup of 2 weeks was successful and bet on reverse H&S pattern brought good result. Our 4140$ target that we've talked about has been hit. Meantime, our long-term bearish setup stands intact as well. That is what we discussed in our videos. Despite solid rally to 4140 daily butterfly is valid and BTC has shown sharp reversal session, which suggests at least further move down, or, as we hope, re-establishing of long-term bear trend, as our major 1800-2000$ has not been hit yet. We suggest that pullback on 1H chart could reach 3/8 FIb level @ 3895$ which should be suitable for short entry.
COINBASE:BTCUSDShort
by Sive-Morten