Over the weekend Bitcoin' moved sideways between the strong areas. Our resistance was the March low at $6533 and our support was the April low at $6425. It breaks downwards from the older counter trendline which is not so remarkable anymore because there are other and newer counter trendlines but still it could be a small sign. The weekly candle closes just below the round number at $6498, so, Bitcoin' took down two out of four major resistance levels between the $6425-$6533.
Remember, we had two weeks ago the "Engulfing" candlestick pattern which will indicate that we could get another leg down but we didn't. So, this will show us a little bullish hold/momentum on the BTC chart and if You remember, in August, we had a pretty strong monthly candle close (let's say a sloppy "Hammer") which could be the reason why we didn't fall further because this monthly candle indicates a little bullishness on the Bitcoin'. Remember, if You want to participate then start to make your researches from the higher timeframes!
On the four-hour chart, Bitcoin' has drawn a bearish chart pattern "Descending Triangle". It is pulled from the bodies and soon, it is ready to make a breakout! The triangle means that we have breakout opportunities to either direction, descending means that we have just a slight advantage to break downwards so, a candle close below the 'currently the main counter trendline' and below the April low level will be a sign that we go downwards (red triangle is the confirmation area). Bullish confirmation would be a candle close above the "Descending Triangle" and above the March low. Then we got the bullish momentum from the chart pattern breakout and if we take down all the major resistance levels from this area then this could be another momentum sign!
Summary: close above the $6533 could mean another leg upwards (green box on the chart) and close below the counter trendline could mean another leg downwards (red triangle)! Just wait for those confirmations and be patient!
Hopefully, this quick overview helps You out a little bit to confirm Your own analysis and levels! Please, don't forget to LIKE! Thank You for your support!
Have a nice week!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Comment
⋅
4h candle close and "Longlegged doji". The price touched the major counter trendline and quickly bounced back above the April low and above the strong support level (good sign)! Some signs come from altcoins, they are also ready to make a breakout and they hold their prices pretty nicely! Still waiting to get more and clearer confirmations!
Comment
⋅
4h candle close and "Longlegged doji". The price touched the major counter trendline and quickly bounced back above the April low and above the strong support level (good sign)! Some signs come from altcoins, they are also ready to make a breakout and they hold their prices pretty nicely! Still waiting to get more and clearer confirmations!
Comment
⋅
..and that’s what You get if You are in the “Descending Triangle”! In the one hour chart we could see that we had a candle close inside this bearish confirmation area “red triangle”, break below the counter trendline and booom! Currently, the $6250 has to hold us a little bit, if not then we go to 6k and possibly even lower!
Comment
⋅
Currently, my mentioned level ($6250) held us pretty nicely and we got a bounce upwards and reached just a little bit above the $6350! On the 1h chart, we could see that the EMA50 (orange line) starts to work as a resistance! Let's see how long this pump will lasting do they push the price back upwards or was it just a fake out to fool our minds to go short again but luckily all altcoins, especially Ripple, got a bounce so, it is a good sign that this wasn't just a bull trap!
I'm looking at the 4h using my custom script which allows me to use the daily Ichimoku on the 4h TF and I have a confluence of daily and 4h Ichimoku elements which could potentially lead to an up-move (yellow box is the target).
Meanwhile, though, there's been a bearish 4h T/K crossover but the 4h Chikou Span is still above price and the future 4h Kumo is bullish.
6,425 is again a very important support - Weekly Pivot almost perfectly overlaps with it too.
For the sake of clarity, the red and blue boxes are S/R areas which I work-out based on the "density" of fractals present in each one of them.
Your feedback would be much appreciated, as usual.
Thanks!
meowlike
⋅
Yes, somebody worry about this is a bull trap, but I agree with you that isn't a trap. I saw too many ALTs will / already has bounced and I don't think it will get in a downward for long time, even break 5900.
I'm looking at the 4h using my custom script which allows me to use the daily Ichimoku on the 4h TF and I have a confluence of daily and 4h Ichimoku elements which could potentially lead to an up-move (yellow box is the target).
Meanwhile, though, there's been a bearish 4h T/K crossover but the 4h Chikou Span is still above price and the future 4h Kumo is bullish.
6,425 is again a very important support - Weekly Pivot almost perfectly overlaps with it too.
For the sake of clarity, the red and blue boxes are S/R areas which I work-out based on the "density" of fractals present in each one of them.
Your feedback would be much appreciated, as usual.
Thanks!