Hi everyone,
Today I am analyzing Bitcoin. I just want to show you guys how I see these patterns when they present themselves to us on the charts.
Looking at the daily time frame, we can see that price has respected that support zone around 19000. Price has indeed bounced off of that price level three times.
The first time was the deepest and that was where we found our current bottom.
After the third tap, we created a higher high taking out previous resistance that was created halfway through June. So finally, this is where we saw our first bit of bullish price action. Once that high was created, the price came back down and wicked beautifully into a daily order block zone which I have highlighted in yellow. If you would have taken this trade, you could have easily secured a risk to reward of 1 / 5.
When the price pierced into this yellow order block zone, it also coincided nicely with the bottom of the ascending channel that the price has been in on the daily time frame.
You see how all these patterns start to play out. Once we see them, we can begin to take advantage of them.
When we jump into the 4-hour time frame, we can then see a beautiful head & shoulders pattern that showed itself. I highlighted the neck zone in yellow and we can see that price impulsively broke this neck zone before retracing back up to it.
We could have shorted BTC at the neck zone with our targets being at the bottom of the channel with also previous support on the 4-hour.
Moving back to the daily time frame, as we are in an ascending daily channel, I would normally be waiting for a break to the downside. Once we see the break, I would wait for a retrace back up to the channel bottom before opening up a short position targeting previous support levels around the 19000 price point.
I would much rather like to see bitcoin bounce off the channel bottom and continue to make higher highs. I'm a crypto investor and I'm cheering it all the way. However, as a trader, we can only trade what the charts tell us.
So, let's see what this chart decides to say in the coming days and weeks.
Hope you all have a fantastic day.
See you at the next one.
The Vortex Trader.
Today I am analyzing Bitcoin. I just want to show you guys how I see these patterns when they present themselves to us on the charts.
Looking at the daily time frame, we can see that price has respected that support zone around 19000. Price has indeed bounced off of that price level three times.
The first time was the deepest and that was where we found our current bottom.
After the third tap, we created a higher high taking out previous resistance that was created halfway through June. So finally, this is where we saw our first bit of bullish price action. Once that high was created, the price came back down and wicked beautifully into a daily order block zone which I have highlighted in yellow. If you would have taken this trade, you could have easily secured a risk to reward of 1 / 5.
When the price pierced into this yellow order block zone, it also coincided nicely with the bottom of the ascending channel that the price has been in on the daily time frame.
You see how all these patterns start to play out. Once we see them, we can begin to take advantage of them.
When we jump into the 4-hour time frame, we can then see a beautiful head & shoulders pattern that showed itself. I highlighted the neck zone in yellow and we can see that price impulsively broke this neck zone before retracing back up to it.
We could have shorted BTC at the neck zone with our targets being at the bottom of the channel with also previous support on the 4-hour.
Moving back to the daily time frame, as we are in an ascending daily channel, I would normally be waiting for a break to the downside. Once we see the break, I would wait for a retrace back up to the channel bottom before opening up a short position targeting previous support levels around the 19000 price point.
I would much rather like to see bitcoin bounce off the channel bottom and continue to make higher highs. I'm a crypto investor and I'm cheering it all the way. However, as a trader, we can only trade what the charts tell us.
So, let's see what this chart decides to say in the coming days and weeks.
Hope you all have a fantastic day.
See you at the next one.
The Vortex Trader.