Break out strategy and The alignment on 200 MA daily
Hey hey hey, How are you doing all? I hope you are doing great. Just like usual, bitcoin is very interesting to be analyzed as well. This is because bitcoin becomes the benchmark of all coins, it is simply a mother of all coins! So, let's make this analysis interesting!
In this current analysis, I want to give a special highlight to the red dynamic line which is the 200 Moving Average on daily time frame and I want to remind you again of so many times about my 3 phases of break out strategy. we can simply apply this break out strategy on 2 conditions in this chart. The first one is when the price broke down of the support on 50% fib levels and the 2nd one is when the price broke down of the Dynamic support line on 200 MA and current action is the phase 2 of breaking out strategy based on the 200 MA. Does it make sense?
In my opinion, both conditions on above paragraph are relevant to each other well. beside, we could see current region as a bear trap region that want to liquidate most of the shorts and break up of the 200 moving average that is now moving align with the 23.6 MA can be considered as a resistance in short term.
Even if the price can break out of this resistance, I firmly believe the maximum level to reach is at around the 50% fibonacci retracement (and the wick fishing to the golden pocket can be anticipated). The best action for now is to stay idle and wait for the next price to give more confirmation.
On the short term, here is my possible action :
- breaking up of the 200 MA on daily is my long signals and targeting the 50% fib levels at most
- Rejection of the 200 MA on daily is my short signals and targeting the next lower low pattern on around $7200 region.
In this current analysis, I want to give a special highlight to the red dynamic line which is the 200 Moving Average on daily time frame and I want to remind you again of so many times about my 3 phases of break out strategy. we can simply apply this break out strategy on 2 conditions in this chart. The first one is when the price broke down of the support on 50% fib levels and the 2nd one is when the price broke down of the Dynamic support line on 200 MA and current action is the phase 2 of breaking out strategy based on the 200 MA. Does it make sense?
In my opinion, both conditions on above paragraph are relevant to each other well. beside, we could see current region as a bear trap region that want to liquidate most of the shorts and break up of the 200 moving average that is now moving align with the 23.6 MA can be considered as a resistance in short term.
Even if the price can break out of this resistance, I firmly believe the maximum level to reach is at around the 50% fibonacci retracement (and the wick fishing to the golden pocket can be anticipated). The best action for now is to stay idle and wait for the next price to give more confirmation.
On the short term, here is my possible action :
- breaking up of the 200 MA on daily is my long signals and targeting the 50% fib levels at most
- Rejection of the 200 MA on daily is my short signals and targeting the next lower low pattern on around $7200 region.
