Haaaaiii YA! Welcome to Master Poop's Dojo! I can see that you are in need of training, my Trader San. Your analysis lacks VISION and UNDERSTANDING, but you have come to the right place! Now don your gi, and bow to your sensei. I will show you how to flow like water, across this dangerously rugged terrain. Now, on to the chart!
You can see that Bitcoin has dropped from the exact resistance that I was warning everyone about. All that has happened so far, is that BTC rallied up to the 1200 and 50 EMAs, and it was rejected. Price was also running into the falling pink trendline, and then we saw a swift decline inside of the bear flag. That's why I was telling everyone, It isn't smart to buy BELOW resistance — no way no how — just like it isn't smart to sell ABOVE support. Those are big no-no's that will 100% destroy you in the long run. These are simple concepts that many people don't seem to understand, as you can tell by all of the people who were rushing to buy yesterday. What's that called again? Oh yeah. FOMO! I don't normally like to use those lame crypto mnemonics, but in this case it applies. Why not wait until we're confirming ABOVE support to buy? That's what trading is all about. Nobody sells at every high and buys at every low. It's simply not a reality. However, what you can do, is buy above support, and sell below resistance. That is key to improving your trading in the long term.
Currently, price is below the bear flag, but it was below it yesterday morning too, right before we exploded higher. So, I would like to see a breakdown and confirmation below the red Support/Resistance area. Technically, we've been rejected at the moving averages, so we've confirmed them as resistance. That doesn't mean that BTC can't blast off through them — anything's possible. It just means that the most likely forward path is going to remain below the moving averages. That's how support and resistance work. You can see that the 1200 was supportive before we smashed through it. Now, it's resistance.
Looking at the broad picture, you can see that the inverse failure in early march produced a similar bear flag picture, which broke down further. We basically have the same thing here, but there appears to be a lot more downside before this corrective move is completed.
The MACD appears to be setting up for a bearish crossover, but it hasn't happened yet. However, we can't lose sight of the fact that we are STILL above the "huge support/resistance zone." As long as we're above that, we're actually sitting above major support. Therefore, it could continue to hold. That's why I won't be a seller until we break down below that level, especially if it's coupled with a bearish crossover on the MACD.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
You can see that Bitcoin has dropped from the exact resistance that I was warning everyone about. All that has happened so far, is that BTC rallied up to the 1200 and 50 EMAs, and it was rejected. Price was also running into the falling pink trendline, and then we saw a swift decline inside of the bear flag. That's why I was telling everyone, It isn't smart to buy BELOW resistance — no way no how — just like it isn't smart to sell ABOVE support. Those are big no-no's that will 100% destroy you in the long run. These are simple concepts that many people don't seem to understand, as you can tell by all of the people who were rushing to buy yesterday. What's that called again? Oh yeah. FOMO! I don't normally like to use those lame crypto mnemonics, but in this case it applies. Why not wait until we're confirming ABOVE support to buy? That's what trading is all about. Nobody sells at every high and buys at every low. It's simply not a reality. However, what you can do, is buy above support, and sell below resistance. That is key to improving your trading in the long term.
Currently, price is below the bear flag, but it was below it yesterday morning too, right before we exploded higher. So, I would like to see a breakdown and confirmation below the red Support/Resistance area. Technically, we've been rejected at the moving averages, so we've confirmed them as resistance. That doesn't mean that BTC can't blast off through them — anything's possible. It just means that the most likely forward path is going to remain below the moving averages. That's how support and resistance work. You can see that the 1200 was supportive before we smashed through it. Now, it's resistance.
Looking at the broad picture, you can see that the inverse failure in early march produced a similar bear flag picture, which broke down further. We basically have the same thing here, but there appears to be a lot more downside before this corrective move is completed.
The MACD appears to be setting up for a bearish crossover, but it hasn't happened yet. However, we can't lose sight of the fact that we are STILL above the "huge support/resistance zone." As long as we're above that, we're actually sitting above major support. Therefore, it could continue to hold. That's why I won't be a seller until we break down below that level, especially if it's coupled with a bearish crossover on the MACD.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-