Hi,
After two "Bullish Engulfing" on the Daily timeframe, after the breakout from the bullish chart pattern called "Inverted Head & Shoulders", the Bitcoin price has finally reached to my previously mentioned high-probability short-term reversal area.
Historically strong $8,000
In the last days, the BTC price has shown pretty good momentum and consistency. Today it touched exactly $8,000 and got a tiny rejection downwards but most likely the strongest area is slightly above the mentioned round number.
In general, 8k has been a pretty strong price level. In 2019 Sept. & Oct. it held the price for several weeks and basically only strong moves have managed to break it - our only danger may lie here, about it a bit later.
The Reversal Area at $8,050 - $8,250
Let's call it as I mentioned before: high-probability reversal area. This "high-probability" means that with those kinds of setups I'm in the long run profitable trader. Don't know how the current trade goes but recently I have been pretty much spot on so, let's hope that this chain doesn't break :)
At the moment, the criteria count is not so high but it is punctual and most importantly, it is clean.
Trade Criteria:
1) Historically the strong area/round number of $8,000 should play a pretty important role around the reversal area.
2) Fibonacci retracement 38%
3) Fibonacci Extension 127%
4) AB=CD
5) Channel projection
6) Daily EMA200 is inside the reversal box
7) You can enter immediately after the price has reached inside the reversal box but as always, to get trades with a higher success rate then wait for a bearish candlestick pattern formation. It is your choice which one is your option, to be said, I will choose the second option because as said, this area can be a danger because if the price has made a breakout then only with powerful candles, and consistency is usually a pretty powerful sign in the crypto world. Still, I will wait for a tiny correction to the ~$7,600 - 7,700 and I act after the price action has guided me into the action!
Do your own research and please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Regards,
Vaido
After two "Bullish Engulfing" on the Daily timeframe, after the breakout from the bullish chart pattern called "Inverted Head & Shoulders", the Bitcoin price has finally reached to my previously mentioned high-probability short-term reversal area.
Historically strong $8,000
In the last days, the BTC price has shown pretty good momentum and consistency. Today it touched exactly $8,000 and got a tiny rejection downwards but most likely the strongest area is slightly above the mentioned round number.
In general, 8k has been a pretty strong price level. In 2019 Sept. & Oct. it held the price for several weeks and basically only strong moves have managed to break it - our only danger may lie here, about it a bit later.
The Reversal Area at $8,050 - $8,250
Let's call it as I mentioned before: high-probability reversal area. This "high-probability" means that with those kinds of setups I'm in the long run profitable trader. Don't know how the current trade goes but recently I have been pretty much spot on so, let's hope that this chain doesn't break :)
At the moment, the criteria count is not so high but it is punctual and most importantly, it is clean.
Trade Criteria:
1) Historically the strong area/round number of $8,000 should play a pretty important role around the reversal area.
2) Fibonacci retracement 38%
3) Fibonacci Extension 127%
4) AB=CD
5) Channel projection
6) Daily EMA200 is inside the reversal box
7) You can enter immediately after the price has reached inside the reversal box but as always, to get trades with a higher success rate then wait for a bearish candlestick pattern formation. It is your choice which one is your option, to be said, I will choose the second option because as said, this area can be a danger because if the price has made a breakout then only with powerful candles, and consistency is usually a pretty powerful sign in the crypto world. Still, I will wait for a tiny correction to the ~$7,600 - 7,700 and I act after the price action has guided me into the action!
Do your own research and please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Regards,
Vaido
Comment:
At the moment, the price has driven higher than the marked area. It is not "case closed" yet, because we might get something from 4H (this is tiny %) but 1H bearish Engulfing did not work inside the marked area and the price trades above $8,300.
Comment:
About that tiny %:
Actually, we already have a breakout from the strong resistance level and it occurred with a strong candle, as my danger warning: "basically only strong moves have managed to break it - our only danger may lie here, about it a bit later."
Again, the price got pushed strongly through it, it happens, and let's see what we got from next hours/days.
Again, the price got pushed strongly through it, it happens, and let's see what we got from next hours/days.
Comment:
“It is not "case closed" yet, because we might get something from 4H (this is tiny %)“
Tiny % occurred and we are back below 8k and the trade is activated!
Tiny % occurred and we are back below 8k and the trade is activated!
Trade closed: target reached:
Comment:
Fresh BITCOIN analysis:
Regards,
Vaido
Regards,
Vaido
7) You can enter immediately after the price has reached inside the reversal box but as always, to get trades with a higher success rate then wait for a bearish candlestick pattern formation. It is your choice which one is your option, to be said, I will choose the second option because as said, this area can be a danger because if the price has made a breakout then only with powerful candles, and consistency is usually a pretty powerful sign in the crypto world. Still, I will wait for a tiny correction to the ~$7,600 - 7,700 and I act after the price action has guided me into the action!