New week - new perspective some say... It is good to update and refresh our thoughts on Bitcoin after a weekend, so that we can consolidate and confirm our analysis from the week before, to keep our eyes sharp, and make sure we fully understand what is going on in the Cryptocurrency markets in realtime. To best make an accurate an analysis, it's best to clear the mind totally, ignore all emotion and reservations you have about any Cryptocurrencies and simply look at the chart with a clear mind. If you do this, you are now trading what you see, and not what you think. The amount of comments I receive saying, for example: "Bitcoin is going to 3k" is surprising. It surprises me that many traders have this predisposed opinion on Bitcoin, expecting it to lose half of it's value and not even trading it during this time, thus losing even more, getting frustrated, realize they're not making money, then trade lots to make something so they feel better, then lose... And then blame market manipulation for their bad moves/decisions. This is a common cycle, especially amongst inexperienced traders, and is so avoidable. Trade withan open mind always.
Swiftly moving on, let's analyze BTC/USD on the 4 hour chart in realtime. As it stands, Bitcoin is trading at 6790 and 6910, which is right at the long term horizontal resistance zone. Since price hit here, price has gently been moving to the downside, with candlesticks showing weakness in the short term. As it stands, I don't think the upside is going to immediately happen. I believe that price needs to at least have some form of downside correction before the upward move. Just because market needs to go down before a new buy, this is not bad news. there is some very interesting support below which price will almost certainly bounce off of.
There is many support levels that are looming just below Bitcoins current price. There is 1) 20 moving average support at 6640... 2) 200 major moving average support at 6600... 3) 50 moving average at 6570... 4) Side-wards support, also at 6600. It is further likely that Bitcoin will stop at these prices and rally because the moving averages are all almost converged. This means that Bitcoin has a huge support floor to break through and it is extremely unlikely to manage to do so simply because there is so many supports in the exact same place. When price bounces within this zone, it is a great time to watch Bitcoin carefully for a buy opportunity.
Bear in mind that price could stop at just about any of the above levels. There isn't one that is especially favorable so to speak, but naturally, getting price down to the side-wards support before the up move would be the best one. Why? Simply because price has then hit EVERY moving average as a support and also a side-wards support line has been hit, meaning there is 4 huge support levels here. The more supports we can hit, the better, naturally.
I will continue to update this idea in realtime if this idea receives enough likes/attention.
Where do YOU think price is going? Leave a comment and chart below, I'd love to see other peoples perspectives of where bitcoin is going!
Please leave a LIKE and FOLLOW. I'd really appreciate it. :-)
Thank you for your support.
Swiftly moving on, let's analyze BTC/USD on the 4 hour chart in realtime. As it stands, Bitcoin is trading at 6790 and 6910, which is right at the long term horizontal resistance zone. Since price hit here, price has gently been moving to the downside, with candlesticks showing weakness in the short term. As it stands, I don't think the upside is going to immediately happen. I believe that price needs to at least have some form of downside correction before the upward move. Just because market needs to go down before a new buy, this is not bad news. there is some very interesting support below which price will almost certainly bounce off of.
There is many support levels that are looming just below Bitcoins current price. There is 1) 20 moving average support at 6640... 2) 200 major moving average support at 6600... 3) 50 moving average at 6570... 4) Side-wards support, also at 6600. It is further likely that Bitcoin will stop at these prices and rally because the moving averages are all almost converged. This means that Bitcoin has a huge support floor to break through and it is extremely unlikely to manage to do so simply because there is so many supports in the exact same place. When price bounces within this zone, it is a great time to watch Bitcoin carefully for a buy opportunity.
Bear in mind that price could stop at just about any of the above levels. There isn't one that is especially favorable so to speak, but naturally, getting price down to the side-wards support before the up move would be the best one. Why? Simply because price has then hit EVERY moving average as a support and also a side-wards support line has been hit, meaning there is 4 huge support levels here. The more supports we can hit, the better, naturally.
I will continue to update this idea in realtime if this idea receives enough likes/attention.
Where do YOU think price is going? Leave a comment and chart below, I'd love to see other peoples perspectives of where bitcoin is going!
Please leave a LIKE and FOLLOW. I'd really appreciate it. :-)
Thank you for your support.
Comment:
Bitcoin price is slow approaching my side-wards support line at 6599. I hope that price comes down to this level, has a major retest, manages to hit a low of 6565 andthen goes back up.
Why 6565? Simple, this is where ALL the moving averages would have been used as support. If price hits here and it has a rejection candle there could be big upside.
HOWEVER...
If price breaks the side-wards support line, and particularly the 200 major moving average support level, then price actually has the EQUAL possibility of breaking down.
There is no confirmed trade of any kind yet. Until something actually happens.
I will continue to update this analysis if it receives sufficient attention.
Please leave a LIKE and FOLLOW. These are the entire reason I take my tie to post all of my work.
Thank you all for your support.
Why 6565? Simple, this is where ALL the moving averages would have been used as support. If price hits here and it has a rejection candle there could be big upside.
HOWEVER...
If price breaks the side-wards support line, and particularly the 200 major moving average support level, then price actually has the EQUAL possibility of breaking down.
There is no confirmed trade of any kind yet. Until something actually happens.
I will continue to update this analysis if it receives sufficient attention.
Please leave a LIKE and FOLLOW. These are the entire reason I take my tie to post all of my work.
Thank you all for your support.
Comment:
Price took quite the tumble lower! If you've been reading my updates properly and keeping up with my ideas, then good job! You saved yourself jumping in and it not going to plan.
Below is a quote from my previous update that was an obvious tell tale signal not to take action in any trade:
""""HOWEVER...
If price breaks the side-wards support line, and particularly the 200 major moving average support level, then price actually has the EQUAL possibility of breaking down.
There is no confirmed trade of any kind yet. Until something actually happens.""""
^ If you followed the above instructions/followed basic English, then you have nothing to worry about and you protected your capital and did NOT execute a trade exactly as I suggested. - well done!
Now to assess what'll happen next after the tumble. When quickly assessing where Bitcoin is currently priced at, it's logical to see what happens as price is actually at a horizontal support level as we speak. If price holds here, it could be a nice recovery rally within the next 48 hours or so.
I will keep updating this analysis as it progresses.
Please leave a LIKE and FOLLOW. I'd really appreciate it.
Thank you for your support.
Below is a quote from my previous update that was an obvious tell tale signal not to take action in any trade:
""""HOWEVER...
If price breaks the side-wards support line, and particularly the 200 major moving average support level, then price actually has the EQUAL possibility of breaking down.
There is no confirmed trade of any kind yet. Until something actually happens.""""
^ If you followed the above instructions/followed basic English, then you have nothing to worry about and you protected your capital and did NOT execute a trade exactly as I suggested. - well done!
Now to assess what'll happen next after the tumble. When quickly assessing where Bitcoin is currently priced at, it's logical to see what happens as price is actually at a horizontal support level as we speak. If price holds here, it could be a nice recovery rally within the next 48 hours or so.
I will keep updating this analysis as it progresses.
Please leave a LIKE and FOLLOW. I'd really appreciate it.
Thank you for your support.
Comment:
Price is still loitering at the horizontal support zone between 6360 and 6240. If price consolidates here it's a good sign in the short term.
If price breaks below the support zone, then it could see lows of 5880, which coincides with a minor side-wards support line.
If price pumps from current levels to 6480 and then STALLS here, this means price has used ALL the major moving averages as resistance, and not only are we hitting 5880, but it shows we are still in a strong major technical downtrend that could last quite a long time as well.
When price had the opportunity to test the major moving averages as support as per my previous analysis, this was an incredibly exciting time because Bitcoin had it's first opportunity in months to break the long term downtrend it was in and actually finally "technically" break the entire downtrend.
Unfortunately price broke below the only guarantee of breaking this downtrend, and looks like it's staying there for a while yet again. :-(
Disheartening for me because I know how long these technical downtrends can last for. But if it doesn't break below 6480 in it's next jump that is what the outcome will be unfortunately.
If price does NOT bounce off of the current support and just tanks downwards to 5880, at least the odds of it bouncing are much higher because the downtrend will be dramatically overextended and a reliable long opportunity for the correction will be easy to grab and monetize from.
Please leave a LIKE and FOLLOW, I'd really appreciate it. :-)
Thank you for your support.
If price breaks below the support zone, then it could see lows of 5880, which coincides with a minor side-wards support line.
If price pumps from current levels to 6480 and then STALLS here, this means price has used ALL the major moving averages as resistance, and not only are we hitting 5880, but it shows we are still in a strong major technical downtrend that could last quite a long time as well.
When price had the opportunity to test the major moving averages as support as per my previous analysis, this was an incredibly exciting time because Bitcoin had it's first opportunity in months to break the long term downtrend it was in and actually finally "technically" break the entire downtrend.
Unfortunately price broke below the only guarantee of breaking this downtrend, and looks like it's staying there for a while yet again. :-(
Disheartening for me because I know how long these technical downtrends can last for. But if it doesn't break below 6480 in it's next jump that is what the outcome will be unfortunately.
If price does NOT bounce off of the current support and just tanks downwards to 5880, at least the odds of it bouncing are much higher because the downtrend will be dramatically overextended and a reliable long opportunity for the correction will be easy to grab and monetize from.
Please leave a LIKE and FOLLOW, I'd really appreciate it. :-)
Thank you for your support.
Probabilities suggest downside is still to come. Bear in mind the 20 moving average support is at 6688, and the 50 and 200 major moving average support are converged at 6590. I would really be happy to see a bounce to 6590 if possible, as it acts as a very compelling support.
Please leave a LIKE and FOLLOW, I'd really appreciate it.