lucamodena
Short

Bitcoin. Correction is not over!

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Hi All!

I think that in the recent days we experienced a classic bull trap situation. A fake breakout of the descending trendline .

Price action formed a bearish pin-bar at 11788 $. This level converges with 50 and 100 MA and 50% Fibo retracement - it was rejected to the downside.

What is more we hit the upper Bollinger Band .

I expect the price to fall to 8500 $ level where the price will find a major support of the 200 MA and the trendline .

Second level of support should be around 6500 $ where we will encouter a lower major trendline , 78.6% Fibo retracement and the lower Bollinger Band . From that level I will be extremely bullish!

I hope it helps.

Cheers!

Comment: Trendline broken, confirmed and retested. It's time to BUY !
Comment: 8500 $ target reached ! The price came back to retest the bearish trendline. It just formed a bullish pin-bar bouncing up from the 200 MA and from the above mentioned trendline.

If it holds above that we can expect another attack of the 11600 $ price zone.

If it breaks down... 6500 - 6600 $ should be expected as I described in the first part of the analysis.

Good luck!
Comment: ALERT !

It looks like it is going to break down. My base scenario is still in play! Watch for 6500 $
Comment: BANG ! just broke down !
Comment: heading toward 6500 $
Trade closed: target reached
Agreed, but I think we have the potential to overshoot the lower trend if it gets there.
+1 Reply
lucamodena steve.elliott
@steve.elliott, yes, it is highly possible. Anyway I will be accumulating at those levels.
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