BTCUSD | Going down to $6 000 level

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
A confident and sharp growth of Bitcoin's value this summer brought most cryptocurrency holders to a bullish mood. However euphoria finished with a last parabolic wave on 26th of June. Further price action formed a standard for Bitcoin triangle which unfortunately was broken down on the 24th of September (Point I at the chart).

Further an ascending broadening wedge was formed which is a strong bearish sign. An ascending broadening wedge is a bearish chart pattern (a reversal pattern). It is formed by two diverging bullish lines. An ascending broadening wedge is confirmed/valid if it has good oscillation between the two upward lines. The upper line is the resistance line; the lower line is the support line.
Each of these lines must have been touched at least twice to validate the pattern.

These touches are displayed at the chart and we can see that price sharply broke down at point II but then met a strong support and bounced above Fib 0.5 level. However ascending broadening wedge resistance rejected further growth and at point IV price action confirmed bearish trend .

Currently the price is at point V and crawls down near with the major resistance which was formed by the original triangle upper edge created by the June's pump. In case of continuation the price will reach $6 000 level within 20 days.

The most important is that the mentioned point of $6 000 is also a place of crossing with the major support which rejected very bearish pattern last time thus with a high probability a new bull run will start there

Stay tuned to receive updates to this trading idea

Best regards,
SkyRock Signals
Trade active: The first forecasted bar of the monthly BTC analysis perfectly predicted. Bitcoin did not managed to consolidate and gain momentum for an upward movement as it was forecasted in the analysis and went down breaking support of $7 000 level. Stay tuned and watch the chart carefully because price action will have many upward corrections now.

Overall, Bitcoin confirms downward trend revealed by technical and fundamental analyses

Trade active: There was an update to this BTCUSD analysis in the Telegram Premium channel. A Premium version of this update had an extension: particular actions-to-do. You can find published screens in the public channel in the free access just follow our link in the signature

According to the actions list we accumulated short position at XBTUSD. Price action of the large timeframe scale confirms testing of $6 000 area. Currently it is very important to reach $7 038 - $6 884 zone to confirm the forecasted trend

Back to the current results:
Subscribers who entered position after analysis release should have already fixed position at $6 568 level and earned almost 96% of profit (base points are 9.6% we use 10x recommended leverage). Afterwards according to the list of actions they waited till Bitcoin price reaches $7 210 area and opened short position. The price then went to the stop loss at $7 282 which saved us from huge losses.

Afterwards we were able to open 2 short positions from the very top of the rally. We are going to open a new short position once the price reaches mentioned in the analysis zone. Duration for the scenario to take place is drawn at the chart. Stay tuned to receive updates

Best regards,
SkyRock Signals team

Trade active: Bitcoin's price touched the upper edge of the action range near with point 1. Afterwards a rejection from local resistance line was received, and now price moves near with the local support level making sharp drawdowns at point 2. What can we see and what forecasts can be made here?

To give a definite answer let's limit our workflow and implement Pitchfork pattern. You can see it is drawn at the chart: green and blue channels. You can see that price chart is near with the border of the middle channel and is about to enter critical area. From this moment we have 3 possible scenarios:

70% probability
Crawling till the (X) crossing of the blue channel border with the support line. Price will go down subsequently replication breakdown fractal. Price will remain in downward trend until $6 000 level will be reached which was mentioned in the core analysis. We enter short in such scenario

20% probability
Breaking above the middle channel before the price action meets mentioned crossing. Such resistance breakthrough will open the way up to $8 000+ area

10% probability
Sharp decrease right to the lower critical area border with a subsequent rapid decrease to the $6 000 area

The most probable scenario is sideways trend until the (X) crossing with a subsequent decrease. Bitcoin should consolidate a lower level before solid and confident run

Trade active: Modified and adjusted to current market state algorithms of RSI bands projection by SkyRock Signals was confirmed at short and long positions.

Analyses of short-term timeframe scales reveals a possibility of a small increase to $7 432 area which will result in upper border resistance crossing. According to bands algorithm it should result in sharp rejection to median level in case of closing below the red line afterwards. Possibility of this scenario is confirmed by current RSI, DMI and volatility projection indicators value. Once the forest will be solid we will come back with short position signal. Stay tuned to updates of this trading idea

Best regards,
SkyRock Signals team

Comment: Modified algorithm of RSI bands projection strategy is confirmed. In the recent update of the core analysis was mentioned an upcoming rise to $7 432 area. We received a bit higher increase but once intersection happened sharp decrease happened and confirmed the strategy.

We opened the short position at $7 507 level because of high probability of closure closure below the band resistance. Forecast is based on the relative strength and DMI indicators values. Currently price action happens below the band and the candle is going to close in 1 minute

Trade closed: target reached: We closed the short position, further hold is too risky. Congratulations with earned ROE 24.4%

Trade closed: target reached: Price action reached the target $6 000 level was hit and now we have a strong uptrend
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@Zivul33, nice prediction
@Zivul33, Support is chosen correctly however resistance line was rejected many times. Also you should revise H&S because the right should went down which normally break the pattern. Right thought but rough realization :)
Zivul33 SkyRockSignals
@SkyRockSignals, the red diagonal line that you see over the right shoulder is the resistance which the right shoulder is being formed under it!! we will see if this support holds or not...
@Zivul33, can you share updates to your idea now, because now your global analysis is irrelevant here in comments :)
Zivul33 SkyRockSignals
sadly my charts got flagged but nothing really changed still the bulls have shown us their weakness when they got rejected at the Ichi cloud
@Zivul33, do you think about hidden bearish divergence happen? Have you checked the projections of PPO?
Zivul33 SkyRockSignals
@SkyRockSignals, how about this for a global analysis ;)
@Zivul33, Ye we tried to implement XABCD but found it is hard to forecast long term scenario. Have you checked our the most recent short term algorithm based strategy analysis for a short position?

We post it yesterday there was a mention we expect a decrease soon. We are going to publish results now
CypherWarrior SkyRockSignals