3 candle rule | Rising trendline | Monthly hammer
Points discussed in analysis:
- Mini h&s pattern on 30m confirmed
Desc. broad wedge do break to the upside. Does not mark end of the downtrend but could tempo. break up.
4h sideways ranging level is trying to hold (red rectangle) this dates back to beginning of August
\u2028I placed a spot buy at ~$6800 to see if it fills and may add on to it depending on the structure and definition of the candles at 6600 or I may just set a SL at 6725. Sold at $6930 for a 1.8% profit
4h watch the trend line that’s held thus far ~$6880
Daily stoch RSI + things come in three’s and my 3rd day bear rule—big fat bearish candle if the prev two have been testing the bulls to see if they’ll defend the gates
TD sequential rule 9 on the green turning down
\u2028Daily not 3 white soldiers, fyi
Weekly rsi still creating lower highs and can’t create a higher high as per prep. Swing
Monthly hammer
Comment:
The previous daily closed as a spinning top. Depending on the context of the trend these candles can simply be indecision candles or potentially reversals. In this case, I'd say it's an indecision. I'd expect some sideways movement here at $7000 but I was expecting a faster acceleration toward $6800/6700 as we're facing resistance in 7000 and have the kijun line/kumo resisting us + the TD sequential printed a 9 of 9 on the green but a weak previous 3 candles. Usually after the completion of 9 candles there's a 1-4 candle correction. Let's see if that happens. Stay tuned!
The previous daily closed as a spinning top. Depending on the context of the trend these candles can simply be indecision candles or potentially reversals. In this case, I'd say it's an indecision. I'd expect some sideways movement here at $7000 but I was expecting a faster acceleration toward $6800/6700 as we're facing resistance in 7000 and have the kijun line/kumo resisting us + the TD sequential printed a 9 of 9 on the green but a weak previous 3 candles. Usually after the completion of 9 candles there's a 1-4 candle correction. Let's see if that happens. Stay tuned!
Comment:
BTC Update September 1st:
The 6h chart gives us a good idea of the larger picture Bitcoin is working on. The red rectangle is our current area of resistance we're trying to work through. As you can see we tried hard to push through it and we finally did. We'll have to watch for the close of $7150 on the 6h and on the 1d. There are a few reasons why this particular level is hard for us to get through:
1. The dashed ascending red trendline resistance (June/July i H&s)
2. The dashed descending yellow trendline resistance (March/May highs)
3. Sideways rectangular supply zone (beginning of August)
We're also still in the confines of a rising wedge. With all this being said, I have no reason to be bearish on alts. They are clearly having a party and our community and hopefully you're reaping the benefits of some well-managed trades.
The 6h chart gives us a good idea of the larger picture Bitcoin is working on. The red rectangle is our current area of resistance we're trying to work through. As you can see we tried hard to push through it and we finally did. We'll have to watch for the close of $7150 on the 6h and on the 1d. There are a few reasons why this particular level is hard for us to get through:
1. The dashed ascending red trendline resistance (June/July i H&s)
2. The dashed descending yellow trendline resistance (March/May highs)
3. Sideways rectangular supply zone (beginning of August)
We're also still in the confines of a rising wedge. With all this being said, I have no reason to be bearish on alts. They are clearly having a party and our community and hopefully you're reaping the benefits of some well-managed trades.
Comment:
Weekly candle had a decent close.
Weekly candle had a decent close.
Comment:
As per the last two cycles, I've mentioned how each preceding time we've barely broken above the previous 618 fib level. You can see this as marked by the blue 618 fib level that lines up with the 10k and the 8.5k impulsive moves. Now if that theory holds true, we should be stopping somewhere right above the current preceding 618 level (~$7500). My max stated target has been $7400 for this move. Let's see how we do!
Comment:
In the 1h chart above, we're still well within the bounds of the large rising wedge pattern (bearish). With the overhead resistance (red rectangle) right above us, we are facing heavy sell pressure in the 7300-7550 range. Keep an eye on the daily closing candle to ensure that we break above the red ascending trendline resistance and the yellow descending trendline resistance.
Comment:
We are sideways ranging on the 4h chart. When an asset moves sideways near a resistance level instead of getting rejected hard, it is typically gearing up for a big up move.
Comment:
We still have about $200 to go till the top of the supply zone. This supply zone dates back to middle of July as shown by the sideways rectangle. This area even dates back to beginning of June when we double-topped at 7700.
Comment:
Massive wicks on multiple hourly candles show sell pressure very high in the 7400 range. Yet, the bulls still persist! Let's keep this party going.
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As mentioned we broke up and out of the descending broadening wedge. Now we're flagging sideways. Those big wicks at the top show lots of sellers waiting at that price range near $7100.