Hello fellas, welcome back with me in this podcast once again in this beautiful day. I will try to cover today's technical analysis with a very detail technical analysis which I believe it could be useful to you. Let's get it started!
So, talking again with the 3 phases of break out strategy that is becoming one of my favorite strategy which I always mention over and over again. Current bitcoin's chart will be a very good example of how the trend line gives a significant effect of the price of an instrument. We can see in this chart that the current action for bitcoin is at the phase 2 of break out strategy. It can be applied to 2 different line and zone. Both areas can be used as well for analyzing this strategy.
The first level is the white support trend line, we can easily deduce a broke down of this trend line has already occured since the September 23rd, 2019. And after that the price kept moving down and had the consolidation action at around $8000 region before a huge manipulation occured at October 25th and 26th. With an 11% rejection toward this resistance at October 26th , it becomes more logic to me that this is just the action of retesting and NOT THE NEXT BULL RALLY.
The 2nd level is the white zone around $9500 - $9400 which has held the price as a horizontal support zone since the parabolic run has over. It was broken down by the price on September 24th. Once again, since the broken down occur, we haven't seen any retesting action toward this region again. And at October 25th and 26th artificial pump, the price surge above this region. But, on daily basis, it only produced a wick to the upside and the next day's candle was super tricky. Right now it is trending just below this resistance zone which for me, making the bitcoin still moving in an absolute bearish momentum.
My conclusion is that bitcoin has a possibility to surge one more time to tap the white resistance trend line, before it will continue its bearish movement to the down side. I personally don't think that bitcoin can break the 2 resistance zone that I've been mentioned in this previous paragraph. So, My view still bearish overall and Be aware of the possible manipulation on the market.
So, talking again with the 3 phases of break out strategy that is becoming one of my favorite strategy which I always mention over and over again. Current bitcoin's chart will be a very good example of how the trend line gives a significant effect of the price of an instrument. We can see in this chart that the current action for bitcoin is at the phase 2 of break out strategy. It can be applied to 2 different line and zone. Both areas can be used as well for analyzing this strategy.
The first level is the white support trend line, we can easily deduce a broke down of this trend line has already occured since the September 23rd, 2019. And after that the price kept moving down and had the consolidation action at around $8000 region before a huge manipulation occured at October 25th and 26th. With an 11% rejection toward this resistance at October 26th , it becomes more logic to me that this is just the action of retesting and NOT THE NEXT BULL RALLY.
The 2nd level is the white zone around $9500 - $9400 which has held the price as a horizontal support zone since the parabolic run has over. It was broken down by the price on September 24th. Once again, since the broken down occur, we haven't seen any retesting action toward this region again. And at October 25th and 26th artificial pump, the price surge above this region. But, on daily basis, it only produced a wick to the upside and the next day's candle was super tricky. Right now it is trending just below this resistance zone which for me, making the bitcoin still moving in an absolute bearish momentum.
My conclusion is that bitcoin has a possibility to surge one more time to tap the white resistance trend line, before it will continue its bearish movement to the down side. I personally don't think that bitcoin can break the 2 resistance zone that I've been mentioned in this previous paragraph. So, My view still bearish overall and Be aware of the possible manipulation on the market.
