yarr

Bitcoin: Where The Price Is Heading Next + At Key Reversal Zone.

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Last week we saw 7 days red in a row which is the new record during this year.

Bitcoin has reached the key reversal area that is backed up by multiple support levels (more details down below). The price is already trying bounce off from this level and creating higher low. At the same time RSI has created lower low and pointing upwards. So when these two aspects are put together we get very first signal of the bullish hidden divergence.

What does it tell us?
It signals that the uptrend will continue and it gives opportunity to buy. Since divergences statistically have better track history on higher time frames, then this should be considered as serious one as well. Once it tries to push higher, it should be expected to accompanied by buy volume .

It's not wise to rely solely on just one signal but to look for additional signals that supports upward movement. What I have learned from my past experience is that Hidden Divergences tends to fail more often if you do not have anything else that supports the upward continuation. That's why it's wise to look for them. They can be bullish candlestick patterns ( engulfing , tweezers, etc), volume starts expanding or regular divergences on the lower timeframes (e.g. 4h).

Support zone
is formed by uptrend line (bottom of the channel), 0.618 fib level (statistically most of the reversal happen from this level), The neckline of IH&S pattern + daily support zone formed in between of $6.900 - $6.700.
Should offer enough of support not to pierce through. The next resistance zone is in between of $7.281 - $7.400 levels and should be the first target.

Conclusion
There are no rush to enter in to this trade. Sometimes it's good to wait until the daily candlestick closes which reveals plenty of information where the price wants to move and if the bulls had control over the price or not.

Please, if any question comes to your mind don’t hesitate to ask! I try my best to respond ASAP!
If you need help with trading, finding information or courses let me know and I’d be more than happy to help you! Feel free to DM me in here or in my Twitter!


Things to Remember:
  • Stop-loss orders are strongly recommended.
  • Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
  • Do your homework before investing.

DISCLAIMER:
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.

Yarr the crypto pirate

Comments

Great Analysis! <3
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Great job mate, you really have a balanced and objective approach, rare qualities in this space. Follow you on Twitter as well. Keep up the great work!
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