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Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
══════════════════════════════
Hello Traders ✌
I'm sorry to be always cautious and often at the opposite side of the major claims but, as I said tons of times, that's what charting is telling me up to date.
After last two bull weeks, I'm listening and reading many statements that basically sounds like: "BitCoin to the moon", "It's over" and so on.
Every opinion should be respected and so I do. I'm not saying it cannot be like, I'm ready to change my view everyday but, at the moment, the chart is telling me a different story.
I have already analyzed the macro BitCoin scenario on July 2022 (see linked ideas) and so now I'm now going to focus only on the last 8 months.
As far as I can see, the only point in favor of a price recovery is the last week strong move above the 200 Days EMA. Breaching the 200 Days EMA is a good sign but stabilize above it is totally another matter, especially after a long down move like this one.
What I think is that we cannot say anything about BitCoin (not even short term) till the key area (orange circle) doesn't reveal its intentions.
First of all, price have not breached the bearish trendline yet, which is usually one of the first and basic signs of a possible consolidation or reversal area.
Second, just above price, we have quite strong minor high (L) at a round level of 25k, a subsequent lower boundary of the seven years channel (violet line) and a strong previous level at round-psycho price of 30k (which was also the breakout line of the Double Top "I").
To me, these are all sign of a huge resistance area which could bounce price back and resume the down trend or, at least, keep on building a congestion area.
Again, I'm not certainly saying that this is what is going to happen but I would be at least very cautious in what I say.
Lastly, the yellow dashed line delineates a possible Head & Shoulders Bottom but, at this point, this is pure fantasy or at least a simple conjecture.
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
═════════════════════════════
Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
══════════════════════════════
Hello Traders ✌
I'm sorry to be always cautious and often at the opposite side of the major claims but, as I said tons of times, that's what charting is telling me up to date.
After last two bull weeks, I'm listening and reading many statements that basically sounds like: "BitCoin to the moon", "It's over" and so on.
Every opinion should be respected and so I do. I'm not saying it cannot be like, I'm ready to change my view everyday but, at the moment, the chart is telling me a different story.
I have already analyzed the macro BitCoin scenario on July 2022 (see linked ideas) and so now I'm now going to focus only on the last 8 months.
As far as I can see, the only point in favor of a price recovery is the last week strong move above the 200 Days EMA. Breaching the 200 Days EMA is a good sign but stabilize above it is totally another matter, especially after a long down move like this one.
What I think is that we cannot say anything about BitCoin (not even short term) till the key area (orange circle) doesn't reveal its intentions.
First of all, price have not breached the bearish trendline yet, which is usually one of the first and basic signs of a possible consolidation or reversal area.
Second, just above price, we have quite strong minor high (L) at a round level of 25k, a subsequent lower boundary of the seven years channel (violet line) and a strong previous level at round-psycho price of 30k (which was also the breakout line of the Double Top "I").
To me, these are all sign of a huge resistance area which could bounce price back and resume the down trend or, at least, keep on building a congestion area.
Again, I'm not certainly saying that this is what is going to happen but I would be at least very cautious in what I say.
Lastly, the yellow dashed line delineates a possible Head & Shoulders Bottom but, at this point, this is pure fantasy or at least a simple conjecture.
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
═════════════════════════════
⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
═════════════════════════════
As you can see, what was seemed a pure conjecture two months ago, it is now reality.
The key area (orange circle) hasn't revealed its final intentions yet but, during the past two months:
- price breached the bearish trendline and pulled back to test it twice;
- price formed a clumsy Head & Shoulder which experienced a strong breakout above the strong minor high (L) at a round level of 25k;
Price is now testing the lower boundary of the seven years channel (violet line) and the strong previous level at round-psycho price of 30k (which was also the breakout line of the Double Top "I").
Even if we got some signs of strenght, to me this remains a short term reversal which is now dealing with a huge resistance area which could still bounce price back and resume the downtrend or force it to build a new congestion area.