BITCOIN | Bullish Footprints!

COINBASE:BTCUSD   Bitcoin / U.S. Dollar

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 technical analysis .

To be said and as you can see from my major image, I'm bullish 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 bullish 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 support level .
2. AB=CD - yesterday, we got a pretty good move upwards from those two.
3. Fibonacci Extension 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 trendline has worked as a support level and most importantly, we are inside the channel which is pulled from closing prices.
6. Daily RSI divergence, marked with red lines.
7. Two bullish Engulfing candlestick patterns from the mentioned criteria. It is a pretty good statement for technical analysts to be bullish 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 ( bearish 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 bullish candlestick pattern called bullish Engulfing - much better (considering textbook examples) than a week ago.

To get optimal entry after the Daily bullish candlestick 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 RSI divergence on the 4H timeframe

The ideal entry should stay inside the marked green area and then ideally, you should wait for a bullish candlestick formation from 1H or from 4H timeframes.

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Best regards,

Comment: At the moment, everything goes as planned.
The price touched the green area and it has made a breakout from bullish chart pattern called Falling Wedge:
Trade closed: target reached:

Hopefully, informative ;)

Good call ;)!
+1 Reply
excellent call.
+2 Reply
woow!take it easy:)
jbird7839 QuantumHedgeFund
@QuantumHedgeFund, Yes, I agree with your chart to the bullish side. In my opinion, we are too suppressed pre-halving RSI wise for extended periods of time. If your chart to the bullish side is correct, this would roughly be the inverted head and shoulders I see forming which would be prep for the rocket-ship launch (Short term target 13-16K with Xmas target possibly breaking ATH $19k). To the downside, there is not much room left (if you are taking a 6-12 month view) based on your chart which I agree. 20% max downside from here with 2x by Xmas possible, risk/reward, I am bullish.
Excellent detail in chart. Thank you.
well done you made me alot more money than i lost thank you
+1 Reply
7k1 - 7k2 should be stronger support,
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