BTC/USD Bullish scenario
In our analysis of the market yesterday, we stated that if the supporting trend line was broken to the downside, our bearish scenario would come into play. I gave the suggestion that we would most likely be seeing spikes to 8300$ before any bearish activity had started but I had failed to mention the obvious bullish scenario, if we broke above the 8300$ price level.
As can be seen on our chart, the resistance fan trend line indicates that a break above 8500$ would lead us into the next resistance fan with highs at 11,000$. These fan structures are used as support and resistance for price throughout. None the less, its important to indicate that even if we were to go into the next fan structure towards its resistance at 11,000$ we would most likely not reach this level because of the mere reason that we have the resistance trend line of the descending wedge on larger time frames and this caps price to the 10,218$ level.
Even more so before reaching the 10,218$ price cap to the bullish direction, we will have a second area of major resistance beginning from 9200-9400$ whereby this area was previously a supporting zone and now a classic resistance zone.
When should we long ? After a break of 8770$ and with that we will have a conservative take profit at 9200$ or 9400$ before re-entering long positions given a break of 9400$ with the next set of take profit at 10,218$ but I would advice exiting at 10,100$ to be safe.
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In our analysis of the market yesterday, we stated that if the supporting trend line was broken to the downside, our bearish scenario would come into play. I gave the suggestion that we would most likely be seeing spikes to 8300$ before any bearish activity had started but I had failed to mention the obvious bullish scenario, if we broke above the 8300$ price level.
As can be seen on our chart, the resistance fan trend line indicates that a break above 8500$ would lead us into the next resistance fan with highs at 11,000$. These fan structures are used as support and resistance for price throughout. None the less, its important to indicate that even if we were to go into the next fan structure towards its resistance at 11,000$ we would most likely not reach this level because of the mere reason that we have the resistance trend line of the descending wedge on larger time frames and this caps price to the 10,218$ level.
Even more so before reaching the 10,218$ price cap to the bullish direction, we will have a second area of major resistance beginning from 9200-9400$ whereby this area was previously a supporting zone and now a classic resistance zone.
When should we long ? After a break of 8770$ and with that we will have a conservative take profit at 9200$ or 9400$ before re-entering long positions given a break of 9400$ with the next set of take profit at 10,218$ but I would advice exiting at 10,100$ to be safe.
CHECK OUT OUR TELEGRAM CHANNEL DOWN BELOW FOR TIMELY UPDATES AND EXACT ENTRIES!
Comment:
BTC USD UPDATE
- On our last BTC USD breakdown, we warned of bearish price action to the 8550-8500$ level but we saw lows created at 9570$. Thereafter, as expected we found support at this price level and saw price ascend to the 9014$ mark before seeing some bearish price action back down to the 8750$ whereby support was found again.
- Now price is currently trading @ 8870$ and MA’s have been used as support from the 8,750$ level. Now, we expect price to continue its upward move to the 9200$ region with highs to be made to 9400$. Thereafter, we will see some price consolidation at this price before the move continues to the 10,200$ price level.
- For those looking for long positions around current price, please ensure to place stops below 8700$ to avoid stop hunting and place conservative take profit at 9200$ and unconservative take profit @ 9400$.
- After a break of the 9400$ price level, we will long again to 10,200$ and its safer this way!
- We had predicted all this from days ago well ahead of any manic movement and continue to foretell the price action of bitcoin. We will continue to keep you updated. Welcome to the greatest show on earth!
- On our last BTC USD breakdown, we warned of bearish price action to the 8550-8500$ level but we saw lows created at 9570$. Thereafter, as expected we found support at this price level and saw price ascend to the 9014$ mark before seeing some bearish price action back down to the 8750$ whereby support was found again.
- Now price is currently trading @ 8870$ and MA’s have been used as support from the 8,750$ level. Now, we expect price to continue its upward move to the 9200$ region with highs to be made to 9400$. Thereafter, we will see some price consolidation at this price before the move continues to the 10,200$ price level.
- For those looking for long positions around current price, please ensure to place stops below 8700$ to avoid stop hunting and place conservative take profit at 9200$ and unconservative take profit @ 9400$.
- After a break of the 9400$ price level, we will long again to 10,200$ and its safer this way!
- We had predicted all this from days ago well ahead of any manic movement and continue to foretell the price action of bitcoin. We will continue to keep you updated. Welcome to the greatest show on earth!
Comment:
BTC USD UPDATE
- In our last BTC/USD update, we stated that we would find supports at the given price and thereafter, we stated that we would see bullish movement to 9200$ as a conservative take profit - we called this days ahead and exactly this occurred. With that being said, we had also mentioned that at this price, we would see some price consolidation occurring. None the less, instead of seeing price consolidate around the 9200$ region, we saw price crash to lows of 8450$ (this is some price action we had not expected initially). This rejection was in line with resistances on our momentum indicators and much more.
- Price saw support at the 8450$ level in line with support from the fan structure, which had previously been a resistance structure and now it is a strong support holding the price of bitcoin up. To add to this, we saw somewhat of a break of the short term trend line, which had kept prices up since the 7000$ level but we still stand firmly above the greater support of the fan trend line structure.
- Now, with bitcoin back at supports on our momentum indicators as well as structural support levels on our price chart, we can expect expect some price consolidation below the 8700$ before we go on to test the previous highs 9200$ and even go further to test the other key resistance level of 9400$. None the less, its important to note that the fact we saw such a strong rejection from the 9200$ level is evidence of the bulls momentum being not so great and adds to the thought that there is reduced chance of us meeting the 10200$ resistance level, but this is still in the books considering that this is the strongest resistance level with our descending trend line resistance being at this level (this is the same trend line which has kept price down since 19,533$ and again at 13,093$ in the most recent episode).
- We shouldn’t open any long positions once again in the market, unless we see a break above the 8850$ price level and this time we will have our take profit at the 9200$ level closing 50% of our long position at the 9200$ high. After a break of the 9400$ resistance level, we can open new longs to the 10,200$ level downtrend resistance level. I state that we should wait until a break above the 8850$ level simply because there is somewhat of a descending channel in price with highs at 9200$ previously and now at 8850$ since the rejection from 13,000$ - this is also the level that the MA’s are currently at acting as an obstacle for price to push above.
- We are at strong supports on our structural price chart as well as our momentum indicators, thus the bulls still have not lost this war and they can and will still rage on.
- In our last BTC/USD update, we stated that we would find supports at the given price and thereafter, we stated that we would see bullish movement to 9200$ as a conservative take profit - we called this days ahead and exactly this occurred. With that being said, we had also mentioned that at this price, we would see some price consolidation occurring. None the less, instead of seeing price consolidate around the 9200$ region, we saw price crash to lows of 8450$ (this is some price action we had not expected initially). This rejection was in line with resistances on our momentum indicators and much more.
- Price saw support at the 8450$ level in line with support from the fan structure, which had previously been a resistance structure and now it is a strong support holding the price of bitcoin up. To add to this, we saw somewhat of a break of the short term trend line, which had kept prices up since the 7000$ level but we still stand firmly above the greater support of the fan trend line structure.
- Now, with bitcoin back at supports on our momentum indicators as well as structural support levels on our price chart, we can expect expect some price consolidation below the 8700$ before we go on to test the previous highs 9200$ and even go further to test the other key resistance level of 9400$. None the less, its important to note that the fact we saw such a strong rejection from the 9200$ level is evidence of the bulls momentum being not so great and adds to the thought that there is reduced chance of us meeting the 10200$ resistance level, but this is still in the books considering that this is the strongest resistance level with our descending trend line resistance being at this level (this is the same trend line which has kept price down since 19,533$ and again at 13,093$ in the most recent episode).
- We shouldn’t open any long positions once again in the market, unless we see a break above the 8850$ price level and this time we will have our take profit at the 9200$ level closing 50% of our long position at the 9200$ high. After a break of the 9400$ resistance level, we can open new longs to the 10,200$ level downtrend resistance level. I state that we should wait until a break above the 8850$ level simply because there is somewhat of a descending channel in price with highs at 9200$ previously and now at 8850$ since the rejection from 13,000$ - this is also the level that the MA’s are currently at acting as an obstacle for price to push above.
- We are at strong supports on our structural price chart as well as our momentum indicators, thus the bulls still have not lost this war and they can and will still rage on.
- As stated in our BTC USD breakdown, the blue ascending fan trend line has been used as support and it was previously a resistance.
- None the less, we have entered a ascending wedge formation on the 4 hourly chart and this is constricting price below 8,880$ price level.
- Therefore, we can expect bearish activity to the 8550-8500$ support level in line with the supporting trend line of the wedge and the fan structure.
- Thereafter, we can presume that bullish activity will continue onto the 9200$ price level at first.
- We could essentially max out at the 9200$ price level and this would mean that we break to the downside of the ascending wedge, which is what traditionally occurs and back down to the 7,700$ mark to meet EMA 200 support on the 4 hourly chart.
- A break above the 9200$ level would indicate a rise to the 10,218$ resistance level of the descending wedge on the bigger timeframe.