Firstly, the bearish Engulfing close below the $5.500 on the 4H timeframe and secondly the Inside Bar candle range on the Daily was the major key points which guided the price back to the trendline which was the major target on my last post (the previous idea is below of this post).
Currently, as I said, the price stopped around the upwards channel bottom trendline, which has worked as a support level. Now, it has held the price fourth time but as you know, everything is not long lasting.
I marked strong areas which have played a significant role in the current area, between $5k and $5,5k, let's start from the highest:
1. $5,336-$5,380 - the fatter blue area has shown itself as a pretty strong resistance and it has worked even as a support level (yesterday). Several rejections and only strong candles have managed to crack this level. So, if the price starts to approach it then it should start to play as a strong resistance (again) and this is the major obstacle to go upwards. A break above of it will guide the price into the higher levels, back above the $5,500
2. $5,178 - currently, the price fights with this level and it has also multiple-multiple rejections to either direction, plus this level matching almost exactly with EMA100 which should start to act as a resistance. So, very hard to push the price upwards from it, especially after that "huge" drop (considering the candles between 5-5,5k, it is a huge drop).
3. $5,110 - I marked this as a red line because a 4H candle close below of it will confirm two bearish "break-below":
- Break below the recently worked trendline (ascending channel bottom trendline)
- Break below the red line which has worked nicely as a strong level
The close below of those will guide the price to the next and to the last strong area around those levels...
4. ~$4,950 - it has been the strongest support level around this area. The most powerful rejection has came exactly from it. Watch this level very closely! Currently, there is also 200EMA which makes this area even stronger and if we get a 4H candle close below of it then the break below this level should be also a pretty strong bearish confirmation.
The last idea post where I mentioned that finally, we can make some technical analysis and we can spot some price reversal, I expected that the price may come down. It came down, to the major target (just a little bit too early from my marked spot) and now we have to watch again those breakout opportunities, that's why I have marked two directional arrows.
SUMMARY: The price is between the major EMA's (100 and 200). On the 1H timeframe, we have EMA 50 and 100 death cross and soon-soon same at 50 and 200 (bearish sign). Break below the red line (strong price level) will be a confirmation that the price starting to approach the major support level which stays slightly below the round number $5,000, a close below of it will be a strong bearish confirmation to the $4,500-$4,600!
Bullish scenario is a little bit riskier because the downwards candle was pretty ugly and there could be a tiny panic. If bulls can push the price back above the fatter blue area then it will be on the more secure side and possibly the maximum target would be the prementioned $5,777-$5,900.
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice weekend,
Cheers!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Previous analysis:
Currently, as I said, the price stopped around the upwards channel bottom trendline, which has worked as a support level. Now, it has held the price fourth time but as you know, everything is not long lasting.
I marked strong areas which have played a significant role in the current area, between $5k and $5,5k, let's start from the highest:
1. $5,336-$5,380 - the fatter blue area has shown itself as a pretty strong resistance and it has worked even as a support level (yesterday). Several rejections and only strong candles have managed to crack this level. So, if the price starts to approach it then it should start to play as a strong resistance (again) and this is the major obstacle to go upwards. A break above of it will guide the price into the higher levels, back above the $5,500
2. $5,178 - currently, the price fights with this level and it has also multiple-multiple rejections to either direction, plus this level matching almost exactly with EMA100 which should start to act as a resistance. So, very hard to push the price upwards from it, especially after that "huge" drop (considering the candles between 5-5,5k, it is a huge drop).
3. $5,110 - I marked this as a red line because a 4H candle close below of it will confirm two bearish "break-below":
- Break below the recently worked trendline (ascending channel bottom trendline)
- Break below the red line which has worked nicely as a strong level
The close below of those will guide the price to the next and to the last strong area around those levels...
4. ~$4,950 - it has been the strongest support level around this area. The most powerful rejection has came exactly from it. Watch this level very closely! Currently, there is also 200EMA which makes this area even stronger and if we get a 4H candle close below of it then the break below this level should be also a pretty strong bearish confirmation.
The last idea post where I mentioned that finally, we can make some technical analysis and we can spot some price reversal, I expected that the price may come down. It came down, to the major target (just a little bit too early from my marked spot) and now we have to watch again those breakout opportunities, that's why I have marked two directional arrows.
SUMMARY: The price is between the major EMA's (100 and 200). On the 1H timeframe, we have EMA 50 and 100 death cross and soon-soon same at 50 and 200 (bearish sign). Break below the red line (strong price level) will be a confirmation that the price starting to approach the major support level which stays slightly below the round number $5,000, a close below of it will be a strong bearish confirmation to the $4,500-$4,600!
Bullish scenario is a little bit riskier because the downwards candle was pretty ugly and there could be a tiny panic. If bulls can push the price back above the fatter blue area then it will be on the more secure side and possibly the maximum target would be the prementioned $5,777-$5,900.
Feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice weekend,
Cheers!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Previous analysis:
Comment:
BTC Short opportunity:
Please, do not forget to support my ide post by hitting the "LIKE" button.
Have a great weekend!
Have a great weekend!
Watch it closely, soon something starts to happen.