LewisGlasgow

Bitcoin - Bullish Deep Crab

Long
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
What's up everyone, I'd like to provide some technical thought amongst all of the madness in the crypto world right now.

Bitcoin is currently forming a bullish deep crab pattern on the 1h chart, providing a trading opportunity with a 1:2.5 risk to reward.

The measurements for a valid deep crab are detailed below.
B: 0.886
C: 0.382 - 0.886
D: 2.24 - 3.618
X to D: 1.618

I'll be expecting price to stall out once it reaches the D point, this forms on a key level of support!

As you can see from the daily chart below the pattern completes slightly above the daily support trendline.


This is sufficient reasoning for a reversal to take place and seems likely considering Bitcoin has already corrected by 50% since the all time high.

Keep this setup on your watch list :)
Comment: Price is quickly approaching $9,000 to complete the pattern, pay close attention to price formation and volume.
Comment: I suspect price may return to the support zone at $9,000 as shown below.


I would pay close attention to the area in which price is trading in right now and the resistance trendline.

If there are any indications of a decline I will be sure to update my analysis.
Comment: We're now approaching the 9k level to re-test the PRZ of the bullish deep crab.

Although, in the Six Figure Capital Telegram channel Kyle pointed out that price has also formed a valid bullish cypher so our options are open.

Keep an eye on the setup below, the viable option seems to be a second test of support... However, pay attention to both for a reversal.

Comment: Here is my current view on Bitcoin, we are looking at a type II re-test.


Pay attention to the reversal level at 9k.
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Comments

Great TA! You’re the only guy I trust on tradingview. A lot of other people flip flop on their ideas very often.
+4 Reply
@welf, I appreciate that, I can openly say I don't trade everything I post, that's why it merely an "idea" until it further develops.

There are a lot of ideas with no clear direction.
+1 Reply
I agree with Bitcoin decreasing in value today and dropping to 9k area. How many times should we expect the price to bounce off the support? If it drops to around 9k again dont we have a double bottom?
+4 Reply
Awesome work Lewis!
If it not return to $10000 Im gonna lose lot of money hope you're right.
+3 Reply
@RmX, why would that be? Thank you
Reply
RmX LewisGlasgow
@LewisGlasgow, Because I missed the first dip to buy BTC now I'm waiting for the next one.
Reply
@RmX, you ain't losing if you're on the sidelines ;) I'll be updating my analysis shortly, the $12,000 level is the resistance to focus on.
Reply
RmX LewisGlasgow
@LewisGlasgow, Looks like Bitcoin had other plans.
Reply
RmX LewisGlasgow
Still expect double bottom.
Reply
11570 done - second posi closed...
+3 Reply
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