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Sive-Morten
Feb 28, 2021 11:42 AM

Weekly bearish engulfing pattern 

Bitcoin / United States DollarCoinbase

Description

Morning everybody,

This time it could be difficult to put everything in minor update. In two words - we intend to stick with weekly bearish engulfing pattern. It has actually three way of utility. First one is for long-term traders who wants to accumulate more coins in portfolio. Those need to wait when pattern hits the target around 38-40K , weekly Fib level and oversold where some part of portfolio could be added.

Second, for those, who in general mind free to accept bearish trading now - you could consider taking short position at some resistance as engulfing pattern in most cases consists of two swings. First one is already in place, while second is yet to start. I've tried to draw the shape of the price. This is just approximation - major points of the patterns could be different, but shape hopefully should remain.

Finally, scalp traders could consider upside bounce (BC leg of the pattern). Currently we do not have anything special yet on intraday chart, except MACD divergence, but once any patterns will be formed - it is possible to consider minor upward pullback.

That's approximately that we intend to follow next week.
Comments
B4Baggio
Great analysis! With the correction like this, we would probably hit the 21 weekly EMA, as on previous bullruns. Let's patiently wait for it.
watchtrend
watchtrend
39800 can be very important point.
IR-FXteam
Hello and thanks for your excellent analysis

In your opinion, given the return from the 618 range, does the short input in the current range make sense?
Sive-Morten
@IR-FXteam, Hi it depends on your time frame. If you trade on hourly and lower time frames - then yes, it is possible to try.

For daily and above TF - the major context is bullish and we consider downside action as retracement
IR-FXteam
@Sive-Morten, Thanks for the reply That is, the probability of targeting point D is negative?
Sive-Morten
@IR-FXteam, Probability can't be negative :)

For short position the "C" top is crucial level - upside breakout means that context has changed and upward continuation becomes the major one.
IR-FXteam
@Sive-Morten, thank you dear
Jokers_Analysis
good
Henry_Ross
Agree!
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