Although the left chart shows a significant between 5555 and 5920, the OBV indicator still shows a downtrend of .
The bears rule the game.
We separate two time periods for more studies the recent downsides.
- 2018/01/05 to 2018/02/10: bitcoin price dropped 50% near one month
2018/03/05 to 2018/06/19: bitcoin price dropped 42% near three months
Obviously, we see that the recent fear was smaller than at the beginning of this year. Because most of us should know or technical analysed or even mentally prepared that bitcoin will fall to a bargaining level i.e. 4k to 5k.
If the lost the name what it is called, then what will we do ? because there is no any more !
analysis may help you to locate where the support or resistance is.
This time we use chinkou span that many traders selectively ignored.
The chinkou span cross signal occurs when the chinkou span falls below the price.
The yellow oval A was telling us that chinkou span lies adjacent kumo, it was not safe to go SHORT.
However, the yellow oval B was telling us that chinkou span lies under kumo, it was safe to go SHORT. (i.e. since 7700)
Chinkou span fell sharply two days ago and what will you expect the market does (Falling or Rising)?
Now, we drew some dotted lines so that you will know how our logic thinking work.
Each dotted line tells you the chinkou span hooked either in a V-shape or inverted V-shape.
Chinkou span in V-shape means support, while chinkou span in inverted V-shape means resistance.
When you look carefully between the relationship of chinkou span and the price, you will see the below findings.
- Chinkou span 1 @ 7807 : Support became Resistance
- Chinkou span 2 @ 6874 : Support became Resistance
How about Chinkou span 3 @ 5870 and Chinkou span 4 @ 4921 ? These are the exercises you are going to watch in the next couple of days.