BTCUSD | The last chance to avoid crash

Bitcoin price action reached the upper triangle's border, the resistance withstand and thus BTC went down in a way it was drawn with price action bars projection in the most recent update which was shared on the 13th of February.

Bitcoin price went below $10 000 and consolidated there which was confirmed by numerous rejections of breaking back to the higher level. Adjusting technical analysis to this fact we receive a step-by-step forecast of the Bitcoin's price action

1. We see a high probability of testing the local support around $9 100 level in the short-term. The support is represented by a blue line at the chart and price action is going to reach this level first

2.1 When the first step is finished Bitcoin's price action has the only chance to continue upward trend development: from the support level it should break above the resistance of $10 056 level which is drawn as a green line. In case it happens Bitcoin will break from descending triangle pattern, however it is still unfinished and thus probability of such scenario is very low.

2.2 The more probable scenario reveals a great chance that ascending price action will be rejected at the mentioned resistance level (green line) and then Bitcoin's value will straightly go down to the global support level which is represented by a lower triangle's edge.

3. In case the previous steps are completed Bitcoin can have a small bounce to $8 600 level (yellow line) in a harmonic XABCD butterfly pattern with a subsequent global support retest

4. From the global support Bitcoin should fluctuate in an ascending trend until the end of the triangle is reached. We forecast it happens on the 13th of July. Taking into account Bitcoin's fundamental news for instance upcoming halving and technical analysis findings we can conclude the triangle should be broken upward which will be a start of a new global upward trend

We will provide you with updates of short-term price action perspectives between the mentioned above long-term steps once the first phase (reaching $9 100 local support) is finished

Stay tuned and be confident in your trades. Press "like", share the idea to your friends and please leave your feedback and thought in comment

Best regards,
SkyRock Signals

Trade closed: target reached:

Step 1 from the short-term perspective is finished. Bitcoin’s price went down right to the mentioned area of $9 100. The lowest point was $9 092 while analysis was published when the price was $9 581 so the decrease is around $500

If you followed the 1st step of the analysis you could have made a great profit with short position at BitMEX


The price action bounces from the local support level and turns into mid term perspective of the step 2

Trade active:

What is the current outcome of the analysis?

Bitcoin price action accurately followed step 1 from the analysis. The price went down from $9 550 to $9 100 level.

Afterwards, there was a massive sell off and capital outflow. The more important moment is that market players did not increase buying volume at lower price action levels. Thus Bitcoin faced with lack of trading volume at the local support level which resulted in a weak bounce to area around $9 300.

Such weak bounce did not allowed to break through $9 500 level to consolidate and gain momentum for impulse growth to the complete the step 2 of the analysis.

Low colume resulted in rollback downwards and breaking of the support level of $9 100. Price action lead us right to the step 3 of the analysis. The forecast was accurate and decrease consolidated around $8 650 level which is a global support.

What happens now?

Currently we are at the last the 4th phase of the analysis. Price action crawls in ascending channel right to the upper edge of the triangle. The movement started at the global support from $8 650 area. After few days of lateral trend the price should break into $9 000 area and reach $9 500 zone

Let’s wait until confirmations come. We see a solid resistance at $8 900 level thus completion of the 4th phase depends bulls power in the upcoming days

Stay tuned,
Best regards
SkyRock Signals team

Comment:

Let's take a closer look at the chart from the analysis above. In this update we would like to bring your attention to a close up of the triangle pattern at the 1 week time frame chart. You can see how accurately price action touched the upper edge of the triangle which resulted in immediate rejection and gradual decrease during last 4 weeks

Switching to a longer time frame for example 1 month makes it easier to see resistance rejection and further price action projection in the triangle pattern

Trade active:

During the months before reward halving happens the price action will be in the downtrend with subsequent manipulative upward spikes and pumps. March and April will consolidate the Bitcoin price in the area of $7 940 - $8 111

Trade closed: target reached:

Target is reached - BTC price hit $7 900

The most recent Bitcoin’s price action analysis has reached the crucial point. BTC tested $7 600 levels but bounced consolidated at $7 850 area. BTC is at the lowest edge of the supportive trend line which means we reached the bottom and it is the most convenient place to enter long position.

There are two reasons which can explain current drop:
1. Cost of mining depends on network difficulty and cost of electricity. Oil price went down by 30% this night which reduced costs of electicity too. Thus fundamental value of Bitcoin production dropped too which resulted in decrease of market price

2. Cryptocurrency exchange Crex24 was hacked yesterday. Intruders stole 1.3 billion in HTML token value. We reported this in our news channel yesterday.

The scenario is confirmed by recent BTC price action. When they stole HTML tokens Bitcoin’s price was around $8 600. Then intruders bought BTC using HTML tokens which resulted in sudden buy volume rise and pump of Bitcoin’s price. Afterwards they started to sell BTC using mixers and exchanges which resukted in sharp dump

Overall, SkyRock Signals team thinks the both reasons took place, but it does not matter now if you did not followed the analysis and entered short position. Currently it is a great time to enter long position around $7 700- 7 800 right at the point where price action touches drawn support line at the attached picture

Trade closed: target reached:

We fixed profit of yesterday's long position which we reported in the update. Entry price was $7 715, close price is $8 067

Bitcoin price went upward right from the zone we recommended yesterday. Currently price action consolidates around $8 100 level and is about to reach it.

Such confident rise brings us +5.2% from initial buy order. Taking into account our standard leverage for middle term positions (x12) it is +62.4% ROE at BitMEX exchange

Trade closed: stop reached:

Global support trend line from the macro triangle pattern was broken today with a sudden and massive sell off. It caused a sharp decrease which still continues

It seems the stolen from Crex24 1.3 billion worth in HTML tokens were moved to Bitcoin and sold at major exchanges.

The whole situation looks like a covering of price push down strategy. It is beneficial to big palyers so they can start accumulating BTC before mining reward Halving which happens in May 2020. In case such scenario confirms we will see a recovering soon

We prepared 4 signals for smart trades today. The whole day they were tested for sustainability. However few moments ago Bitcoin’s price felt down and volatility index dramatically increased again. The signals are postponed till tomorrow we also keep turned off the bots so all deposits are protected from losses

Stay tuned and do not hesistate to contact support if you have any questions!

Comment:

Among reasons were:
1. Sell off stolen on Crex24 tokens. It was rejected due to a small USD value of fraud so it could not affect BTC price
2. Corona virus. It was rejected because we revealed no changes in Bitcoin's network hash rate in China

The most probable explanation:
Oil price dramatically went down which decreased cost of electricity used for mining and thus decreased fundamental value of BTC. Intrinsic value dropped so the largest institutional investors having the worst period at stock exchange are aware to have losses at cryptocurrency market too and thus they sell holdings.

Trade closed: target reached:

The crash about we warned has happened because the price action did not bounce from the support level.

The analysis and its updates reached the targets and are closed now. We hoped crash will not happen but Bitcoin missed its last chance and dropped dramatically. What is going to happen next see in the next analysis which will be published soon.

Currently Bitcoin is at the edge of the 200 week moving average the price action has only 1M Triangle formation support. What does it mean? Stay tuned to know it first!