The elections in the USA have a strong effect on the price. After seeing the huge surge in the price of gold we also see the major increase in price of BTC. In just three days, the price has increased by 20%.
The dominance of BTC is increasing as well, and alts are bleeding. This behavior is common when BTC is growing a lot in a short period of time. But there is hope, on several earlier occasions such a surge in BTC and BTC Dominance has led to a temporary alt season. When BTC consolidates and the market cap flows back into alts we will see many interesting trading opportunities arise.
I will make sure to report on them whenever I see such opportunities on this account. For BTC itself however, we will struggle to do any technical analysis on shorter timeframes as the price is moving into new territories.
In the chart above I show how to look at horizontal zones in order to find help in charting the current price. Other alternatives for charting such large moves is by using Fibonacci retracements. In today's analysis however I will focus only on horizontal levels.
It's interesting to see that we see the most important levels around the $13,000 mark, the $14,000 mark, the $15,000 mark and the $16,000 mark.
I highlighted two zones explicitly in red, because they are EXACTLY at the psychological levels of $16,000 and $14,000. I consider those extra powerful.
The other levels have been created using the S/R flip principle. The key idea being that horizontal levels can stay important even after they have been broken.
All further info about these levels can be found on the chart. For trades I suggest to keep an eye on the $16,000 and the $15,000 levels. More specifically I suggest to get a short trade in as the price has been ridiculously high recently. A short from the ~16,000 to the ~15,000 would be my first recommendation.
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- Trading Guru
-------------------------------------------------------------- Disclaimer! This post does not provide financial advice. It is for educational purposes only!
Comment
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The price followed this idea really nicely, and it reached the target support zone faster than I could imagine. However, if you zoom out now and check which pattern this new movement made you can identify a bull flag.
This pattern is not very common, so I dedicated a new idea to it including a little educational section that should give you more information on how to draw these in your own TA.
Please check out my next idea to keep following me with BTC and give it a like!
LOVE this post. I just posted my short call as well! :)
Trading-Guru
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I will be posting more of these regularly, so follow me to find out about great trading opportunities
Trading-Guru
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I would also like to remind you that I make all of this available completely for free. If you like my work, you can help me out greatly by giving me a thumbs up on this idea
fract
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the coolest time to short
RyodaBrainless
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Hmmm... All of the indicators showing an overload of overbought. For me, increasing from $10.000 to $16.000 is extremely hit the sky, Like SpaceX. I will note and create an alert at $16.000. Thank you, Guru
Son_Of_Siam
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Nice breakdown. I have my first target level for a short at 15250
dragansimic171111
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Ver nice. Thanks.
wtarlater
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Muchas gracias, excelente explicación.
Siempre aprendo mucho con tus análisis educativos.