Hi friends! Welcome to this update analysis on the BIG KING, the macdaddy of crypto, BITCOIN! Let the games begin! Looking at the four hour chart, you can see that BTC smashed straight through the 1200 EMA (in red) which is equal to the 200 EMA from the daily chart. That was perfectly in line with the condition of my last analysis. If you recall from yesterday's chart, I said "If we confirm below the grey trendline , the critical 1200 EMA will be tested." As you can see, that happened immediately.
BTC continued to fall well below the 1200, but now we appear to be printing a doji of sorts, as some buyers begin to step in. If we do close this candle with a doji, or a positive candle, there is a high probability that BTC will rally higher to test the bottom of the 1200 EMA. Technically, a test of that level is very necessary, and it's very likely, since it is equal to the 1200 EMA from the daily chart. If you look at past recent history, on every occasion that we smashed through the 1200 EMA, we returned to it for a test. I don't think this scenario will be an exception, so I do expect some sort of a return to the 1200. From there, I would like to see it hold as resistance, and send BTC lower. That would set up some amazing short side trades, and it would be powerful confirmation of the 1200 EMA as resistance. Obviously, if the 1200 isn't held as resistance, we could see a lot more upside. Technically, we've just broken down below it. We haven't confirmed the 1200 as resistance, so we will have to assess BTC's response to that level when the time comes. For now, it appears as though the buyers are stepping in here, to move in for the retest.
If this current push higher (meaning the small doji) fails to hold, and the sellers overwhelm the buyers by pushing price below the low of the current candle, then look out below. Technically, the most likely scenario is a retest of the 1200 EMA, since that has historically been the most common outcome. 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-
BTC continued to fall well below the 1200, but now we appear to be printing a doji of sorts, as some buyers begin to step in. If we do close this candle with a doji, or a positive candle, there is a high probability that BTC will rally higher to test the bottom of the 1200 EMA. Technically, a test of that level is very necessary, and it's very likely, since it is equal to the 1200 EMA from the daily chart. If you look at past recent history, on every occasion that we smashed through the 1200 EMA, we returned to it for a test. I don't think this scenario will be an exception, so I do expect some sort of a return to the 1200. From there, I would like to see it hold as resistance, and send BTC lower. That would set up some amazing short side trades, and it would be powerful confirmation of the 1200 EMA as resistance. Obviously, if the 1200 isn't held as resistance, we could see a lot more upside. Technically, we've just broken down below it. We haven't confirmed the 1200 as resistance, so we will have to assess BTC's response to that level when the time comes. For now, it appears as though the buyers are stepping in here, to move in for the retest.
If this current push higher (meaning the small doji) fails to hold, and the sellers overwhelm the buyers by pushing price below the low of the current candle, then look out below. Technically, the most likely scenario is a retest of the 1200 EMA, since that has historically been the most common outcome. 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-
Comment:
BTC is now entering a critical support/resistance area. If it falls below the red shaded area, this selloff could get very violent.
