StealPipsSal

Bitcoin showing a change of mood

Short
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Recently, bitcoin had just broken the high of 30k and my previous analysis went down the toilet; however, we are starting to see different price action here. Following the breakout of 30k bitcoin had shot up and struggled to get past the 33059-33324 zone as we saw MASSIVE bearish pressure come in at that point. We have not see bearish candles the way they are forming now for almost the entirety of this bull run. It seems that it was a false breakout of that zone as bitcoin quickly came to return below that zone, while in all other breakouts it has relentlessly flew by. We are starting to see larger ranged bear candles and there appears to be a lot of trading volume in this price range, so I think this will be a critical area in deciding bitcoin's next move. I understand its very possible for bitcoin to simply continue traveling vertically because of the insane price movement we've been seeing, but this is simply my analysis of what I believe will happen. There was a false breakout on the 33k zone on the daily timeframe and you can see a very large wick has formed at the top. This may be the area where we see bitcoin correct to either the 23k-24k zone or the 19k-20k zone since those are both areas bitcoin has spent a lot of time at those zones. I believe bitcoin will fall to the 30k area and push back one final time to complete a head and shoulders pattern and finally soar through to these zones I mentioned. In the case of a flash crash, 12k is the lowest possible area I could see this falling. Either way, there will be incredible buying pressure at all of these zones I just mentioned so stay tentative if you decide to short this and recognize when you should flip to the buy side since we're ultimately in a bull market. All this euphoric buying at all time highs may be coming to an end as we return to logical levels to look for buys at.

Comments

Yes let's see how it goes. How are you trading this one?
+2 Reply
StealPipsSal TheSignalyst
@TheSignalyst I’ll probably be looking for sells on the formation of the right shoulder if price moves that way, if not I’ll just sit on the sidelines and see what happens
+1 Reply
TheSignalyst StealPipsSal
@StealPipsSal, wise decision! thank you for your detailed response!
Reply
don't panic
Reply
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