So the price of bitcoin went about 200 dollars above my target and Right now I am using the bitfinex chart because it is leading the way in terms of bullish strength, which makes sense because it also lead the way in bearish strength on the downfall. There is a possibility that if this strength persists it may be able to break out to make a higher high, above 8500, however, if it doesn't then the bulls on the exchange are fighting to get slaughtered. Also, it appears that a lot of the whales have shown their faces, buying and selling, opening large short sells a lot right now which I think is an interesting note, including a 10000 bitcoin worth of shorts, which I believe is owned predominantly by a small group of people or an individual. That's a big short, and it was a smart positioning, so these are definitely whales fighting it out or whales appearing to fight it out to get a good short position or any other realm of possibilities.
Right now in Bitcoin:
There is a strong channel and there is a symmetrical triangle in that channel, so it can break in either directions, if it does break downwards, I think the bottom of the channel will provide strong resistance, enough to catch it; however, there is a huge morning star inverted hammer, huge. And it marks a strong resistance at around 6430, a close above this wick would how strong bullish meaning and it would indicate a lot of weakness in the bears and it would also mean that the bulls will most likely test the 7700 to 7800 area. If something like this does occur, it may cause a short squeeze, a big one, but I do believe that short is smart money, because of the placement, its really truly phenomenal to witness smart money at play. If the support of the channel is broken, I believe the bears will most likely retest 6800 and I think it will most likely break.
Key Points:
1.) On Bitfinex, Bitcoin is in a strong ascending channel with a symmetrical triangle (in yellow) inside of the channel. The symmetrical triangle can break out either direction, but I do believe that it is more likely to break in a downwards direction because of the inverted hammer which I would like to add had more volume than any point on the rise and each rejection at the bottom, the price objectives of the symmetrical triangle are 7090 if it breaks out to the downside and 7455 if it breaks to the upside. However, I do think that the bottom trendline, could catch it. Please note: nearly all other exchanges do not show a symmetrical triangle or an ascending channel, instead they show a bearish wedge and a head and shoulder topping pattern. I will be posting an update of this on this thread.
2.) If the triangle breaks downwards, I do believe the bottom of the channel can catch it, however, if it does not get caught by the bottom of the channel, I believe that it will test 6800 and it will bounce to form the right should of the head and shoulder topping pattern, or it will completely roll over, because I have thought something would have been resistance supported by TA and it just fell through.
3.) One last thing to take note, is that there is a possible falling three methods* on the weekly, it was something I was keeping a close eye on because if it does come to fruition, it means there will be a huge drop incoming, it is important to question the validity of this though because the third rising candle shouldn't close above the support of the first weekly candle, and it closed about 200 above it. But that is text book falling three methods, in the real world, not everything can always be so clean.
*Falling three methods: about a 5 candle pattern, the first candle is a large decline, and the "three" which can be 2 or more than three but three would be best, should be within the price range of the much larger falling candle. The last candle, the final move of the candle stick pattern, is a significant decline roughly the size of the first candle stick.
Last Analysis:
Right now in Bitcoin:
There is a strong channel and there is a symmetrical triangle in that channel, so it can break in either directions, if it does break downwards, I think the bottom of the channel will provide strong resistance, enough to catch it; however, there is a huge morning star inverted hammer, huge. And it marks a strong resistance at around 6430, a close above this wick would how strong bullish meaning and it would indicate a lot of weakness in the bears and it would also mean that the bulls will most likely test the 7700 to 7800 area. If something like this does occur, it may cause a short squeeze, a big one, but I do believe that short is smart money, because of the placement, its really truly phenomenal to witness smart money at play. If the support of the channel is broken, I believe the bears will most likely retest 6800 and I think it will most likely break.
Key Points:
1.) On Bitfinex, Bitcoin is in a strong ascending channel with a symmetrical triangle (in yellow) inside of the channel. The symmetrical triangle can break out either direction, but I do believe that it is more likely to break in a downwards direction because of the inverted hammer which I would like to add had more volume than any point on the rise and each rejection at the bottom, the price objectives of the symmetrical triangle are 7090 if it breaks out to the downside and 7455 if it breaks to the upside. However, I do think that the bottom trendline, could catch it. Please note: nearly all other exchanges do not show a symmetrical triangle or an ascending channel, instead they show a bearish wedge and a head and shoulder topping pattern. I will be posting an update of this on this thread.
2.) If the triangle breaks downwards, I do believe the bottom of the channel can catch it, however, if it does not get caught by the bottom of the channel, I believe that it will test 6800 and it will bounce to form the right should of the head and shoulder topping pattern, or it will completely roll over, because I have thought something would have been resistance supported by TA and it just fell through.
3.) One last thing to take note, is that there is a possible falling three methods* on the weekly, it was something I was keeping a close eye on because if it does come to fruition, it means there will be a huge drop incoming, it is important to question the validity of this though because the third rising candle shouldn't close above the support of the first weekly candle, and it closed about 200 above it. But that is text book falling three methods, in the real world, not everything can always be so clean.
*Falling three methods: about a 5 candle pattern, the first candle is a large decline, and the "three" which can be 2 or more than three but three would be best, should be within the price range of the much larger falling candle. The last candle, the final move of the candle stick pattern, is a significant decline roughly the size of the first candle stick.
Last Analysis:
Comment:
On coinbase and most of the other exchanges, there is a rising wedge, you can see this rising wedge in light blue. There is also descending volume, further supporting the idea that there is a possible head and shoulder topping pattern. This this come true, I do not know how bitfinex can support the price of most other exchanges.
Comment:
My final addition to the analysis is that it is possible that this falling three methods come true, even though, the third candle stick closed above the first one. This is something important, really important to take note of.