What's up people!
Today we're taking a look into the price movement of Bitcoin.
As we can see, Bitcoin is forming a bear flag that is on the verge of breaking down.
If you want to take a position in Bitcoin price right now, shorting it would be the most profitable way, with a stop loss at 5135$ and a take profit around 4500$
If you rather long Bitcoin, the best entry price would be in the lows of 4000$.
Today we're taking a look into the price movement of Bitcoin.
As we can see, Bitcoin is forming a bear flag that is on the verge of breaking down.
- The target of the bearish flag coincides with the 200-Moving Average (Blue Line) which represents a price of around 4500$.
- A bounce from there is highly likely, but this bounce is most likely going to be short lived for several reasons, one being that the volume at that level is weak and that area has not acted as support in the past.
- The conclusion is that the most logical place for a entry at this time for a long position is the 4000$ level, around the 500-Moving Average (Purple Line) which also is the .382 retracement from the lowest pivot, the initial bullish upswing from 3200$.
If you want to take a position in Bitcoin price right now, shorting it would be the most profitable way, with a stop loss at 5135$ and a take profit around 4500$
If you rather long Bitcoin, the best entry price would be in the lows of 4000$.
Comment:
Update:
1. As we can see Bitcoin has formed a solid roof at 5135$ and the price pattern is taking the shape of a head and shoulder - but the price has actually moved up after touching the neckline and not broke down yet - simply hanging on a thread right now before succumbing to the inevitable correction.
2. We can also see that the RSI has formed a resistance at 50, which is the level that has supported the recent uptrend thus far.
3. If we manage to climb above the 54 mark of RSI, it could mean that this is a bear trap - however this scenario is not a plausable scenario at this time in my opinion - for now 50 RSI will be resistive.
1. As we can see Bitcoin has formed a solid roof at 5135$ and the price pattern is taking the shape of a head and shoulder - but the price has actually moved up after touching the neckline and not broke down yet - simply hanging on a thread right now before succumbing to the inevitable correction.
2. We can also see that the RSI has formed a resistance at 50, which is the level that has supported the recent uptrend thus far.
3. If we manage to climb above the 54 mark of RSI, it could mean that this is a bear trap - however this scenario is not a plausable scenario at this time in my opinion - for now 50 RSI will be resistive.
Comment:
Looking at the 1D to confirm my analysis, looks like it's on point, the 4Hlooks like it want's to break up slightly but I highly doubt this - looking at the smaller timeframes this can be a bit misguided.
Comment:
Also note that the daily RSI timeframe is overbought. 4h was not.
Comment:
Looks like a small short squeeze for the over-leveraged traders before the drop, a bit unexpected. I was expecting a sharper drop.
Comment:
Some fun fact, about 80% of the bitmex market is in a short position, another squeeze can cause us to move higher. Exciting times.
Comment:
Above was yesterday, now its 40 Long 60 short, obviously this move Up has had a big impact on the market sentiment, however a clear majority is still shorting bitcoin.
Comment:
Trade active:
SHORT
Comment:
Update below, a bit more information, it's breaking down very soon!
Comment:
Bitcoin has unexpectedly found support from the .236 retracement from the bullish upswing marked out on the chart here drawn from the retracement tool.
The current pattern is forming a wedge and by the looks it might retrace up to the top of the channel before we could see the correction happen.
A extension could happen and we could find Bitcoin at 5.9k before the correction happens. From a trading perspective I don't see this as the good position for a trade right now, Bitcoin is acting tricky right now.
The current pattern is forming a wedge and by the looks it might retrace up to the top of the channel before we could see the correction happen.
A extension could happen and we could find Bitcoin at 5.9k before the correction happens. From a trading perspective I don't see this as the good position for a trade right now, Bitcoin is acting tricky right now.
Comment:
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