Bitcoin : 4 hours time frame is very crucial
Hello all, let make this real quick about the chart work of bitcoin.
Looking at the chart above, We can see a potential 2 patterns here. The first one is the rising wedge pattern which has been broken previously and the second one is the parallel channel of up trend moves. Things that I want to say is that currently the price is touching the lower line of the channel which acts as a support trend line. And if we use the 3 method of break out strategy, the price has already broken out the lower line of the rising wedges, therefore there might be a retest toward this previous broken support that is now become resistance. Will it be this time to touch those resistance?
Of course, we might see what the price action brings when the 4 hours candle closes. If we see any bounces, we might see retest toward the lower line of this rising wedge. But, if the price breaks down of current support, we might see the price drop to test the next support of $8400, $8000 and $7700.
Looking at the chart above, We can see a potential 2 patterns here. The first one is the rising wedge pattern which has been broken previously and the second one is the parallel channel of up trend moves. Things that I want to say is that currently the price is touching the lower line of the channel which acts as a support trend line. And if we use the 3 method of break out strategy, the price has already broken out the lower line of the rising wedges, therefore there might be a retest toward this previous broken support that is now become resistance. Will it be this time to touch those resistance?
Of course, we might see what the price action brings when the 4 hours candle closes. If we see any bounces, we might see retest toward the lower line of this rising wedge. But, if the price breaks down of current support, we might see the price drop to test the next support of $8400, $8000 and $7700.
Update on previous analysis about bitcoin.
1. The lower line of the channel can't hold the price from further down side movement.
2. MACD histogram has shown a growing strength but to the down side.
3. we may see retest toward the lower line as broken support that is now become resistance and get rejected (there will be the entry for short)
4. I'm targeting the $8000 region as a foundation for support as it's the psychological and round number
5. Bears are still taking over control of overall market