The Bitcoin price has shown incredible consistency upwards and this is the major reason why I have been a bit quiet, AGAIN. As you should already know, the consistency is a powerful weapon for continuation growths on crypto markets and "they" make the market a bit unpredictable.
There was a really strong level around $11,000 which had to work as resistance but the Bitcoin price almost didn't react on it, like a warm knife through the butter. This occurred because of the consistency. I didn't want to mess with your thoughts around $11k but now we have another strong area. This time I want to point out some scenarios because the blue major counter-trendline starts to play a significant role in the future price action.
The key resistance around $12,000.
It consists of multiple price action criteria which can work as resistance levels or if the price manages to break this then the mid-term trend should continue to go upwards.
The resistance consists of:
1. Fibonacci Golden Ratio 62%. Pulled from the top to the 17. July low. This golden ratio has worked multiple-multiple times as a resistance level, on different timeframes, years and etc.
2. The important Fibonacci level matching exactly with another criterion - the major counter-trendline should act as a resistance level.
This trendline and the Fibo level make a crossing area, it makes this area pretty strong but that's not all...
3. The crossing area is formed exactly around the round number $12,000 which acts as a resistance.
4. The mentioned crossing area around $12,000 has previously worked as a resistance level: on 4th July and on 12th July.
5.* Mid-term lower lows and lower highs.
Four pretty strong resistance criteria are located around $12,000, so, we can assume that we may see a little rejection from there. Firstly, I have to say "a little" because of the recent consistency. Today's Daily candle has been also very powerful but let's see, the area still remains strong. It would be a perfect confirmation if we get a bearish candlestick pattern on the 4H timeframe - Shooting Star, Bearish Engulfing or Evening Star - and the perfect target would be around $11,100
As said, do be more secure on the selling in those kinds of markets then we need bearish candlestick patterns. If we don't get it and if the counter trendline gets cracked? Usually, those counter-trendline breakouts have been super powerful but let's see. I will start to make updates while this has occurred. Definitely, I don't recommend to buy BTC right away after the breakout, we need a little throwback to get in with a better price. All depends on the breakout structure, candles and etc. It is a bit riskier but let's see how the price reacts around the key level at $12,000!
Do your own research and if this matching with mine then you are ready to go!
Please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Best regards,
Vaido
There was a really strong level around $11,000 which had to work as resistance but the Bitcoin price almost didn't react on it, like a warm knife through the butter. This occurred because of the consistency. I didn't want to mess with your thoughts around $11k but now we have another strong area. This time I want to point out some scenarios because the blue major counter-trendline starts to play a significant role in the future price action.
The key resistance around $12,000.
It consists of multiple price action criteria which can work as resistance levels or if the price manages to break this then the mid-term trend should continue to go upwards.
The resistance consists of:
1. Fibonacci Golden Ratio 62%. Pulled from the top to the 17. July low. This golden ratio has worked multiple-multiple times as a resistance level, on different timeframes, years and etc.
2. The important Fibonacci level matching exactly with another criterion - the major counter-trendline should act as a resistance level.
This trendline and the Fibo level make a crossing area, it makes this area pretty strong but that's not all...
3. The crossing area is formed exactly around the round number $12,000 which acts as a resistance.
4. The mentioned crossing area around $12,000 has previously worked as a resistance level: on 4th July and on 12th July.
5.* Mid-term lower lows and lower highs.
Four pretty strong resistance criteria are located around $12,000, so, we can assume that we may see a little rejection from there. Firstly, I have to say "a little" because of the recent consistency. Today's Daily candle has been also very powerful but let's see, the area still remains strong. It would be a perfect confirmation if we get a bearish candlestick pattern on the 4H timeframe - Shooting Star, Bearish Engulfing or Evening Star - and the perfect target would be around $11,100
As said, do be more secure on the selling in those kinds of markets then we need bearish candlestick patterns. If we don't get it and if the counter trendline gets cracked? Usually, those counter-trendline breakouts have been super powerful but let's see. I will start to make updates while this has occurred. Definitely, I don't recommend to buy BTC right away after the breakout, we need a little throwback to get in with a better price. All depends on the breakout structure, candles and etc. It is a bit riskier but let's see how the price reacts around the key level at $12,000!
Do your own research and if this matching with mine then you are ready to go!
Please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Best regards,
Vaido
Comment:
Things can change quickly: "The current 4H candle can produce a bearish Engulfing (unlikely)". The unlikely scenario may become true, which is really great!
We have already 1H timeframe Evening Star price action around the strong area, not a formation because textbook doesn't count it like an Evening Star, I don't know why, maybe I have to write it over ;)
1 hour to go to get 4H candle close confirmation, nothing is confirmed before we haven't seen 4H candle close but the last 1H candle was really promising for sellers.
We have already 1H timeframe Evening Star price action around the strong area, not a formation because textbook doesn't count it like an Evening Star, I don't know why, maybe I have to write it over ;)
1 hour to go to get 4H candle close confirmation, nothing is confirmed before we haven't seen 4H candle close but the last 1H candle was really promising for sellers.
Now there are a couple of scenarios:
1. We haven't seen any significant bearish candlestick pattern around the $12,000, so, no trade at the moment but we have still some possibilities. The current 4H candle can produce a bearish Engulfing (unlikely). The current and the next 4H candle can produce the Evening Star (more likely) and the Daily can produce a Shooting Star (more likely), so let's wait for those candlestick patterns. I update you when I see something!
2. We have a breakout above the counter trendline and if we didn't get a close below the $12,000 then the rejection upwards from the $12,000 can drive us into the higher levels. As said before, definitely it is risky to buy right after the breakout; we should wait for a throwback and a smaller timeframe rejection from $12,000 has to be on the chart to jump into the wave upwards.
A very tiny line between buying and selling but it is what it is.
In summary: wait for those bearish candlestick patterns, if you don't see those then the throwback has to get a rejection from $12,000 to jump into the wave.