Ranging for now, next moves will be significant
Bitcoin has already broken out from the $20000 region which previously was acting as a strong area of resistance. However, Since the break out event, we haven't seen some action of the phase 2 which is retesting the previous broken resistance as a support. We know that even the price goes higher than the break out point, eventually it will goes back to the break out point to test it as a confirmed support. At current condition, there is a possibility for the price to reverse and confirms the phase 2 at any time which is a potential correction in the future.
This is the lower time frame which I'd like to see and to analyze deeper at current structure. We know that the phase 2 hasn't been confirmed but the price goes higher in the upside direction and considering that there is a hyperbolic moves to the upside, I'll look for a chance to enter the short position at any time we see further confirmation. In the short term, we see that the price is entering the consolidation pattern as the volume is getting lower.
The key point at this consolidation moves is this triangle which is very typical at the accumulation stage. This contracting triangle however can give us a good confirmation whether we are going to enter the short position or wait for longer time to take any short position. At current structure, I just feel so dumb if I open a long position when I still don't know the exact resistance and the point of center after the price breached the ATH. That's why I'll look at these 2 levels.
First is if the price breaks above the upper line of the triangle, there might be a potential push toward the white resistance zone which is in alignment with the 1.618 Fibonacci extension in the bigger cycle. Usually, most of the 5 waves structure ends up at the 1.618 Fibonacci extension level which this is becoming my strong cornerstone to potentially enter short position at any rejection pattern given.
Second condition is when we see the price breaks below the lower line of the triangle which I'll probably put some portion of total fund to enter short position (should be around 20% of total exposure) and targeting the .382 Fib level as the nearest possible target. But if I see the action of breaks down below this support zone, I'll add more short position (another 30% of total exposure) as the accumulation at profit action and targeting the golden pocket range as the next target.
This is the lower time frame which I'd like to see and to analyze deeper at current structure. We know that the phase 2 hasn't been confirmed but the price goes higher in the upside direction and considering that there is a hyperbolic moves to the upside, I'll look for a chance to enter the short position at any time we see further confirmation. In the short term, we see that the price is entering the consolidation pattern as the volume is getting lower.
The key point at this consolidation moves is this triangle which is very typical at the accumulation stage. This contracting triangle however can give us a good confirmation whether we are going to enter the short position or wait for longer time to take any short position. At current structure, I just feel so dumb if I open a long position when I still don't know the exact resistance and the point of center after the price breached the ATH. That's why I'll look at these 2 levels.
First is if the price breaks above the upper line of the triangle, there might be a potential push toward the white resistance zone which is in alignment with the 1.618 Fibonacci extension in the bigger cycle. Usually, most of the 5 waves structure ends up at the 1.618 Fibonacci extension level which this is becoming my strong cornerstone to potentially enter short position at any rejection pattern given.
Second condition is when we see the price breaks below the lower line of the triangle which I'll probably put some portion of total fund to enter short position (should be around 20% of total exposure) and targeting the .382 Fib level as the nearest possible target. But if I see the action of breaks down below this support zone, I'll add more short position (another 30% of total exposure) as the accumulation at profit action and targeting the golden pocket range as the next target.
