The price has fallen, does it mean the bears have won?
That remains to be seen. Check the one hour chart. Try to keep an open mind and to avoid thinking you know for certain what will happen. None of us know for certain.
Follow the trendlines. Please see the chart. For now we have support at the $8200 -$8300 range and resistance at approximately $8894 fib line. Note that the fib line resistance is approximate.
If we make a low lower than 3/23/18 that is a probable sign that we are headed down. If the candle closes below $8200 it is a very probable sign of heading down.
At the moment we are in a trading range with lower highs and higher lows. In this situation, of course, we want to avoid buying on the resistance line and avoid selling on the support line. That is what the market makers would like us to do. These type of sine wave patterns or triangle patterns are tricky.
There are some signs of weakness in the current move, but that could change. Moving up to somewhere between $9600 -$10,400 is still possible.
But if the previous signs occur, consider it a warning.
Always be careful to not trust anyone's idea too much and try to keep an open mind.
Please let me know your thoughts.
This is not investment advice to buy or sell. Please do your own research and make your own investment decisions. :)
That remains to be seen. Check the one hour chart. Try to keep an open mind and to avoid thinking you know for certain what will happen. None of us know for certain.
Follow the trendlines. Please see the chart. For now we have support at the $8200 -$8300 range and resistance at approximately $8894 fib line. Note that the fib line resistance is approximate.
If we make a low lower than 3/23/18 that is a probable sign that we are headed down. If the candle closes below $8200 it is a very probable sign of heading down.
At the moment we are in a trading range with lower highs and higher lows. In this situation, of course, we want to avoid buying on the resistance line and avoid selling on the support line. That is what the market makers would like us to do. These type of sine wave patterns or triangle patterns are tricky.
There are some signs of weakness in the current move, but that could change. Moving up to somewhere between $9600 -$10,400 is still possible.
But if the previous signs occur, consider it a warning.
Always be careful to not trust anyone's idea too much and try to keep an open mind.
Please let me know your thoughts.
This is not investment advice to buy or sell. Please do your own research and make your own investment decisions. :)
Comment:
The dotted red uptrend line has broken to the downside. I found this concerning, however, at this time, the lower support of around $8300 is still intact. Now, we have a descending triangle. This can be considered a bearish pattern which will be bullish if we break above the descending line. But the lower support must hold. Trade carefully
Comment:
$8300 support is clearly broken now. Now we can expect it to move downwards. It is possible to get another retest of the resistance $8300 from the underside, but not for sure. There is a stronger possibility of going to the bottom around $7000 now.
Comment:
Also keep in mind there is another possibility to look out for. The last move up to $8900 could have been the start of a ABC correction of the first move, so if that is what is , it could still turn around somewhere - but very hard to predict where and it has risk of keeping on going down.
Comment:
So the price fell to the 7800 range and then bounced back to around $8277. This was the test of the previous support from the underside to see if the resistance was valid. I mentioned this was a possibility earlier. This is normal during a drop and it does not necessarily mean we have hit the bottom. There is a good chance we will now get a low lower than the $7240 on March 18. I suspect we will hit the $6900 trendline which is now around $7000. There also is a support around $7550-7650 range which I expect may give a bounce at least, if not the bottom. These prices are not too far from each other though. But if the recent upward movement does actually get about the $8300 resistance and then holds the level after a support test, then it could move up from there, though it seems more likely to first go down more before doing that.
Comment:
I recommend to take the time to think of your trading plan. If you buy at $7600 or $7800 and the price falls to $7000 -how bad is that? It's not that bad as long as it doesn't keep falling, of course. But a bounce off the lower trendline might send the price up to $8600 or higher. Since we really cannot know for sure where the bottom is, you may want to set aside a percentage to put in at each possible support level. Still keep in mind a stop limit where you may get out in case the lower support breaks.