Each dump of these last hours is bought perfectly and simply on the most obvious trend line, starting from the last two latest bottoms.
Then after rebound, this "support line" gives way.
The next support is then bought in the same way, which gives way after a small rebound, and so on, as you can see on my left graph. And this already three times.
The problem is that this little game, the next trend lines are now... much lower... as shown in my graph on right.
So if the current support gives way, the fall may be more consistent "without a net" until the supports of my 2nd graph!
Test this plot in turn if you have a doubt, integrating the wicks (so with near-surgical precision), and other exchanges (here on Bitstamp) and do not hesitate to tell me if you too you note... it's like the game of the cat and the mouse... or the wolf and the sheeps... looking for what a majority traced as "supports" behind its screen all over the world, which consensus is often because of its simplicity (many people see the same thing and use it to bring some consistency to their next buy/sell orders), and influences in the very short term the price of Bitcoin by giving false rebound signals...
...and if "to know how to analyze a sheep behavior" was the best definition of Chartism?
especially in times of "parabolic" hype and new media coverage?
(thank you Libra, thank you reporters amazed by this new unexpected bubble of Bitcoin...)
Then after rebound, this "support line" gives way.
The next support is then bought in the same way, which gives way after a small rebound, and so on, as you can see on my left graph. And this already three times.
The problem is that this little game, the next trend lines are now... much lower... as shown in my graph on right.
So if the current support gives way, the fall may be more consistent "without a net" until the supports of my 2nd graph!
Test this plot in turn if you have a doubt, integrating the wicks (so with near-surgical precision), and other exchanges (here on Bitstamp) and do not hesitate to tell me if you too you note... it's like the game of the cat and the mouse... or the wolf and the sheeps... looking for what a majority traced as "supports" behind its screen all over the world, which consensus is often because of its simplicity (many people see the same thing and use it to bring some consistency to their next buy/sell orders), and influences in the very short term the price of Bitcoin by giving false rebound signals...
...and if "to know how to analyze a sheep behavior" was the best definition of Chartism?
especially in times of "parabolic" hype and new media coverage?
(thank you Libra, thank you reporters amazed by this new unexpected bubble of Bitcoin...)
Comment:
Zoom:
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And what becomes of a Support defeated? ... a Resistance!
As it is the case since yesterday of my 2nd trend line that I name L2:
As it is the case since yesterday of my 2nd trend line that I name L2:
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Let's continue this analysis of supports-resistances:
The bull support named L3 was since that night in confrontation with the bearish resistance R2, and he has just given way down!
The bull support named L3 was since that night in confrontation with the bearish resistance R2, and he has just given way down!
Comment:
As can be seen on my last two screens, yesterday at 18H the price was at the crossroads (surrounded in blue below) of the 2 supports L3 and L4 (*).
(*) The latter, L4, being drawn from the bottoms of June 15 and 16, so the next support after L3
(*) The latter, L4, being drawn from the bottoms of June 15 and 16, so the next support after L3
Comment:
Unlike L1 and L2 who did not resist in turn, the price has benefited from the simultaneous influence of these two supports L3 and L4, giving it a nice rebound with enough strength to overcome the 2 resistances of bearish trendline, R1 and R2!
If one sticks to this methodology of supports-resistances, from now on it remains as obstacle only the zone of the double top around the $9,400 on which we have just had a first rejection this morning.
If one sticks to this methodology of supports-resistances, from now on it remains as obstacle only the zone of the double top around the $9,400 on which we have just had a first rejection this morning.
Comment:
If a triple top is obviously possible, the trend chart and news is Bullish (cryptocurrency technology "stable-corners" becomes mainstream at Facebook, Amazon, Ebay etc., giving even more legitimacy and interest to Bitcoin, and simply more visibility)
And if this last area of resistance gives way, which is just as likely, then there will be no obstacle to get with Bitcoin the $10,000!
And if this last area of resistance gives way, which is just as likely, then there will be no obstacle to get with Bitcoin the $10,000!
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The Bear will prevail over the Bulls
as the next bearish trendline
will not be crossed upward:
Act according to the result
as the next bearish trendline
will not be crossed upward:
Act according to the result
Trade active:
Another rejection:
But this trendline is so attacked that it can give way, to follow!
But this trendline is so attacked that it can give way, to follow!
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Bearish trendline crossed, it's gone again with the bulls!
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Here is what seems to be a pullback (circled in blue) showing that the bearish trendline (in red) has become potentially support:
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Boom! Confirmed: