BITCOIN | Areas of Short-Term TP, Be Patient With Selling!
Hi,
The price of Bitcoin has started to approach my previously mentioned area. As said, the price just fooled around and now it has taken serious steps to the higher prices. These two marked areas are also great and safe to take out your short-term "longs" (buys) profits and possibly, they can produce short-term reversals.
The time-window
Still, the possible area of correction is slightly mixed - two strong price zones are too close to each other. Both of them (marked with red boxes) are capable to produce reversals, it makes it a bit complicated. To separate them, I came up with the time-window and to trade them you need bearish candlestick patterns on 4H+ timeframes. Definitely, here doesn't work 15 min. bearish patterns, not even 1H, as said, you need bearish price action on 4H+ timeframes!
Two marked areas but one is stronger than another, which one?
Okay, firstly fit one of them with your analysis and look at which one is matching with yours. For me, the higher red box, around $10.500, is slightly comfortable to catch a short-term correction but still, let's start from the lower box which stays around $10,000.
Lower red box ~ $10,000
The perfect time-window for this area is today or tomorrow. It means that the price has to reach there and to open a short-term sell trade, you have to get a bearish candlestick pattern on the 4H timeframe.
Criteria:
1) Fibonacci Retracement 62%.
2) Fibonacci Retracement 50% - as you can understand, both of them are pulled from different tops.
3)The strong orange horizontal price zone. The are is detected on the Daily, multiple rejections to either direction.
4) The round number/psychological number of $10,000 should act as a resistance.
5) 4x Fibonacci Extensions.
6) Smaller blue channel projection should act as a resistance.
7) Wait for a bearish candlestick pattern on the 4H timeframe!
As said, the area is pretty strong for producing short-term reversal because here are some pretty good criteria that should act as a strong resistance level. Also, as mentioned before, a good and safe area to take out your short-term buying profits. Still, my eyes are pointed slightly higher because, for me, there are just a bit more comfortable criteria.
Higher red box ~ $10,500
The time-window starts at 8. February and it lasting almost four days. So, you have four days to wait for that needed bearish candlestick pattern inside the marked area, be patient! If you cannot see it, then feel free to skip it because actually the area between $10,000-$10,500 is very powerful and this would not be the first time when the price just SMASH these price levels with a strong and powerful candle - that's why you should wait for a bearish candlestick pattern to reduce your risks.
As I said previously, my eyes are pointed to this level because I feel a bit more comfortable because of....channel projections and AB=CD match up. Criteria count may have a bit more subjective but those are my bread and butter:
1) The black channel projection upper trendline should act as a resistance level.
2) If the BTC price doesn't touch the blue channel projection before the higher red box then this should also act as a resistance and they make up a crossing area.
3) 2x! AB=CD and the D points are exactly around $10,500
4) Fibonacci Extension 162%
5) Last time when the price touched this price zone it got a massive rejection downwards. So, previously worked resistance level goes to the criteria list.
6) Those small corrections during the current uptrend are basically Bull Flags and those Bull Flags targets are pointed exactly inside the marked box!
7) Wait for a bearish candlestick pattern on the 4H timeframe!
Okay, now you have some areas, what I described as easily as I can, to match with your analysis IF you are looking areas from where to take out your short-term longs or if you looking at short-term corrections to go short.
Do not forget that seventh criterion because BTC has shown pretty good consistency and usually those consistencies may end up with a massive FOMO effect. Be patient and let the price action guides you out of the trade and let the price action guides you into the trade!
Regards,
Vaido
The price of Bitcoin has started to approach my previously mentioned area. As said, the price just fooled around and now it has taken serious steps to the higher prices. These two marked areas are also great and safe to take out your short-term "longs" (buys) profits and possibly, they can produce short-term reversals.
The time-window
Still, the possible area of correction is slightly mixed - two strong price zones are too close to each other. Both of them (marked with red boxes) are capable to produce reversals, it makes it a bit complicated. To separate them, I came up with the time-window and to trade them you need bearish candlestick patterns on 4H+ timeframes. Definitely, here doesn't work 15 min. bearish patterns, not even 1H, as said, you need bearish price action on 4H+ timeframes!
Two marked areas but one is stronger than another, which one?
Okay, firstly fit one of them with your analysis and look at which one is matching with yours. For me, the higher red box, around $10.500, is slightly comfortable to catch a short-term correction but still, let's start from the lower box which stays around $10,000.
Lower red box ~ $10,000
The perfect time-window for this area is today or tomorrow. It means that the price has to reach there and to open a short-term sell trade, you have to get a bearish candlestick pattern on the 4H timeframe.
Criteria:
1) Fibonacci Retracement 62%.
2) Fibonacci Retracement 50% - as you can understand, both of them are pulled from different tops.
3)The strong orange horizontal price zone. The are is detected on the Daily, multiple rejections to either direction.
4) The round number/psychological number of $10,000 should act as a resistance.
5) 4x Fibonacci Extensions.
6) Smaller blue channel projection should act as a resistance.
7) Wait for a bearish candlestick pattern on the 4H timeframe!
As said, the area is pretty strong for producing short-term reversal because here are some pretty good criteria that should act as a strong resistance level. Also, as mentioned before, a good and safe area to take out your short-term buying profits. Still, my eyes are pointed slightly higher because, for me, there are just a bit more comfortable criteria.
Higher red box ~ $10,500
The time-window starts at 8. February and it lasting almost four days. So, you have four days to wait for that needed bearish candlestick pattern inside the marked area, be patient! If you cannot see it, then feel free to skip it because actually the area between $10,000-$10,500 is very powerful and this would not be the first time when the price just SMASH these price levels with a strong and powerful candle - that's why you should wait for a bearish candlestick pattern to reduce your risks.
As I said previously, my eyes are pointed to this level because I feel a bit more comfortable because of....channel projections and AB=CD match up. Criteria count may have a bit more subjective but those are my bread and butter:
1) The black channel projection upper trendline should act as a resistance level.
2) If the BTC price doesn't touch the blue channel projection before the higher red box then this should also act as a resistance and they make up a crossing area.
3) 2x! AB=CD and the D points are exactly around $10,500
4) Fibonacci Extension 162%
5) Last time when the price touched this price zone it got a massive rejection downwards. So, previously worked resistance level goes to the criteria list.
6) Those small corrections during the current uptrend are basically Bull Flags and those Bull Flags targets are pointed exactly inside the marked box!
7) Wait for a bearish candlestick pattern on the 4H timeframe!
Okay, now you have some areas, what I described as easily as I can, to match with your analysis IF you are looking areas from where to take out your short-term longs or if you looking at short-term corrections to go short.
Do not forget that seventh criterion because BTC has shown pretty good consistency and usually those consistencies may end up with a massive FOMO effect. Be patient and let the price action guides you out of the trade and let the price action guides you into the trade!
Regards,
Vaido
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Comment:
Fresh BTC analysis:
Regards!
Nice hunting, I don’t know how it turns out but this is a perfect example of being patient, like a sniper - just waiting and waiting and when everything is ready you pull the trigger ;)