Yesterday, the entire crypto market got a little pump upwards. Technically, yesterday's bounce was pretty solid because of the daily candle close. Previous short-term scalp opportunity was successful, it is a bit longer than the previous idea but still, I hope the result would be the same.
The Bitcoin price has drifted around the $8,000 more than 11 days but luckily the movement has left some footprints and luckily, we can use those footprints in .
To be said and as you can see from my major image, I'm for the next 2-5 days. Definitely, the price must not fall much lower than 8k.
To talk about the current area I have to open a Daily timeframe:
As you can see the price has stopped around the $8,000 but what are those footprints which allow me to predict moves. Let's start to count those:
1. The round number, $8000, itself. Historically, it has already played an important role to produce some resistances and support levels. So, it should and actually, it already has worked as a .
2. - yesterday, we got a pretty good move upwards from those two.
3. 127%. Pulled from the biggest waves as possible, which makes it stronger.
4. Weekly EMA50, it is not in the chart (because it is Daily) but in general, a good criterion which should act as a support.
5. A bit sloppy but still, channel bottom has worked as a and most importantly, we are inside the channel which is pulled from closing prices.
6. Daily divergence, marked with red lines.
7. Two patterns from the mentioned criteria. It is a pretty good statement for technical analysts to be from the current levels. The first one has occurred about a week ago and the second one occurred after yesterday's candle close. The second one is much stronger because the red candle got a close below the 8k ( signal) but bulls were "alerted" and they bought the price back up, above the all the prementioned rejection criteria and most importantly, the yesterday's bounce formed a pattern called - much better (considering textbook examples) than a week ago.
To get optimal entry after the Daily pattern formation, we have to wait for a little throwback. Then we get a better risk/reward ratio and etc. If we look at the 4H chart (the major image) then we can add some lower timeframe criteria:
8. Tripple bottom
9. Tripple bottom with divergence on the 4H timeframe
The ideal entry should stay inside the marked green area and then ideally, you should wait for a formation from 1H or from 4H timeframes.
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The price touched the green area and it has made a breakout from bullish chart pattern called Falling Wedge:
Hopefully, informative ;)
Excellent detail in chart. Thank you.