Ok so first of all I am trying to make this your number one reference for trading BTC .
I'll try to give a super detailed analysis covering everything you need to know in order to trade BTC for the next cycle.
So, if you have any questions don’t hesitate to ask them.
And also, if you found this analysis helpful please show it some appreciation by liking, commenting and sharing this article, because I invested a lot of time into this.
I will update this idea a lot over the next couple of hours/days, because I want to highlight different indicators, timeframes, etc.
So, this first part will be covering the ins and outs of the weekly chart of BTCUSD .
Ok so know that this is out the way lets go straight to the analysis.
Part 1: The Weekly Chart
Ok so as you probably already know, I like to look at the BIG PICTURE of things.
Therefore, we are analysing the weekly log chart of BTC for today.
As you can see we are in a huge price wedge right now.
And if you take a closer look you will see that we are at the bottom of this which also builds a huge support ($6,000).
Again, it is also a big psychological number, which we visited a couple of times in the past.
We are already extremely squeezed near the end of the where the price must go one of 2 ways up (O1/green lines) or down (O2/red lines) .
***THE WXYZ PATTERN I USED HAS NOTHING TO DO WITH ELLIOTE WAVES***
I just used the lines to visualise the approximate expected price movement.
Ok so now that we are talking about the expected price movement, lets talk about the expected targets.
As you probably already noticed we have the same target ($35,000) entirely independent from the two possible scenarios.
The only differences will be:
- The amount they move after breakout (O1 = 400%, O2 = 700%)
- The time (of course we would reach the target faster with O1) and if we end up in O2 we will see even more blood for a longer amount of time.
So now the question is which scenario do you want more?
I am asking you this question because most of the beginners want to see the bull run come as fast as possible.
I know it hurts seeing all this blood, but I would prefer O2 with about 7x profit.
Conclusion Part 1:
Right now, I am just watching the market. In both cases we have approximately the same target for the next bull run, therefore I would I don’t have a problem with the price going even further down.
In both cases I will look to enter the market once we broke out of the and retrace to the breakout level.
I expect the price to go even further down and why I do so I will show in the next updates.
So again, if you find this article helpful show it some love.
The next updates/parts will come over the next couple of hours/days depending on how much I get motivated from your interactions.
In the daily chart we see a head and shoulders pattern forming.
If this is forming, then it is VERY likely that O2 plays out, becouse it is a bearish head and shoulders pattern, indicating that the price will go down.
The pattern would have to be upside down in order to indicate that we will go up.
Conlcusion Part 2:
The day chart is indicating that we will go even lower, if this head and shouldes patterns forms itself.
There is basically no volume at the $6,000 level.
But the thing is there is no volume in the whole red box until about $4,200 level.
Conclusion Part 3:
If we break through this wedge at the bottom we will have a freefall until the $4,200 level.
The Cloud is very thick at the $7,100 level which indicates STRONG resistance.
This plays hand in hand with the head and shoulders pattern.
The resistance forms the head of the second shoulder.
On top of that the Moving Avergages have crossed which indicates a momentum change.
They indicate that we have bearish momentum right now.
Conclusion Part 4:
The Ichimoku Cloud is indicating, that it is very likely, that the head and shoulders pattern forms itself.
Have a nice weekend!
In the month of June 2018 btc dropped from 77ish to 6k then bounced to aprox 6700 and then dumped to 58k level clear example of dead cat bounce.
Now it is forming HnS too with it.
Ready to slip down with double force as rightly indicated by you may be to 4k.
Thnx for nice chart and showing it from various perspective.