BITCOIN | Bullish Patterns, Bullish Signs, Bearish Pressure!
Hi,
After yesterday's tiny pump upwards the market has been stable, nothing new because this is a kinda familiar scenario. This price movement guided to price again above the $7,000 and it formed a candlestick pattern on the Daily timeframe - "Bullish Engulfing". There are some interesting areas and scenarios to keep an eye on. To be said, I will wait for price movements to around $8,000-$8,200 because of the current(!) price action, it shows that this area will be a high-probability trading area. Let's see, firstly the price has to reach there and luckily we have some signs for further growth and soon we might get them more.
Daily "Bullish Engulfing"
Candlestick patterns are pretty powerful tools if you use them correctly and if you use them on the correct timeframes. For me, the most powerful and the most reliable candlestick patterns are on the higher timeframes. The Daily timeframe is considered as higher timeframe and it gives me quite a good indication for further price action. Yesterday's candle close gave us a confirmed bullish Engulfing, it is a pretty strong candlestick pattern (for me, TOP 2) and on the Daily. As said previously, the rejection pushed the price back above the 7k and back above the Weekly EMA100. Weekly EMA10 has held the price pretty strongly for several weeks, was it a final touch in the near future, soon we can find it out.
Inverted Head & Shoulders
Actually, yesterday's Bullish Engulfing was the second around the $7,000. Before Christmas, the Bitcoin price did also a pretty powerful climb upwards which end up with an Engulfing candlestick pattern on the Daily, it was a Head!? Yes head, we are pretty close to getting a confirmed Inverted H&S breakout. IHS is a bullish chart pattern which is confirmed after the breakout from the neckline. The current neckline is pulled from bodies on the 4H timeframe and if the 4H candle gets a close above $7,500 then this bullish chart pattern is valid and the further growth is supported with several bullish patterns.
Before the breakout from the IHS, I cannot do anything because of the neckline which is also a pretty strong short-, mid-term trendline and it has worked as a strong resistance. I'll wait for a 4H candle close above $7,500, hopefully, we get a nice and healthy throwback to get better entries to the train to $8,000. To be said, I don't hunt this run to the $8,000 because I don't like breakout as much as reversal ones but hopefully, I see something comfortable which allows me to jump to the wave.
There are some cons also for further growth. The current action is happening just below the 4H EMA200, it works as a resistance. So, we might see a little throwback, it may not be little because the overall long-term trend and pressure are still downwards.
We have a Death Cross between 100&200 EMA on the Daily timeframe, as you see the downward pressure is still there but the price should get a little bit more breath time after it breaks above the IHS neckline!
Do your own research and please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Regards,
Vaido
After yesterday's tiny pump upwards the market has been stable, nothing new because this is a kinda familiar scenario. This price movement guided to price again above the $7,000 and it formed a candlestick pattern on the Daily timeframe - "Bullish Engulfing". There are some interesting areas and scenarios to keep an eye on. To be said, I will wait for price movements to around $8,000-$8,200 because of the current(!) price action, it shows that this area will be a high-probability trading area. Let's see, firstly the price has to reach there and luckily we have some signs for further growth and soon we might get them more.
Daily "Bullish Engulfing"
Candlestick patterns are pretty powerful tools if you use them correctly and if you use them on the correct timeframes. For me, the most powerful and the most reliable candlestick patterns are on the higher timeframes. The Daily timeframe is considered as higher timeframe and it gives me quite a good indication for further price action. Yesterday's candle close gave us a confirmed bullish Engulfing, it is a pretty strong candlestick pattern (for me, TOP 2) and on the Daily. As said previously, the rejection pushed the price back above the 7k and back above the Weekly EMA100. Weekly EMA10 has held the price pretty strongly for several weeks, was it a final touch in the near future, soon we can find it out.
Inverted Head & Shoulders
Actually, yesterday's Bullish Engulfing was the second around the $7,000. Before Christmas, the Bitcoin price did also a pretty powerful climb upwards which end up with an Engulfing candlestick pattern on the Daily, it was a Head!? Yes head, we are pretty close to getting a confirmed Inverted H&S breakout. IHS is a bullish chart pattern which is confirmed after the breakout from the neckline. The current neckline is pulled from bodies on the 4H timeframe and if the 4H candle gets a close above $7,500 then this bullish chart pattern is valid and the further growth is supported with several bullish patterns.
Before the breakout from the IHS, I cannot do anything because of the neckline which is also a pretty strong short-, mid-term trendline and it has worked as a strong resistance. I'll wait for a 4H candle close above $7,500, hopefully, we get a nice and healthy throwback to get better entries to the train to $8,000. To be said, I don't hunt this run to the $8,000 because I don't like breakout as much as reversal ones but hopefully, I see something comfortable which allows me to jump to the wave.
There are some cons also for further growth. The current action is happening just below the 4H EMA200, it works as a resistance. So, we might see a little throwback, it may not be little because the overall long-term trend and pressure are still downwards.
We have a Death Cross between 100&200 EMA on the Daily timeframe, as you see the downward pressure is still there but the price should get a little bit more breath time after it breaks above the IHS neckline!
Do your own research and please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Regards,
Vaido
Trade closed: target reached
Regards,
Vaido