BTC (FINEX) Mid-week TOP DOWN Analysis
Welcome to another episode of our favourite show - bitcoin brought to you by FELIX!
ROUND UP OF OUR MOST RECENT BREAKDOWN
- Following our most recent price top-down analysis for Bitcoin/XBT, I stated that we could intra-day trade the wedge, which bitcoin was stuck in and that I was in favour of a break upwards towards 4.9k before the drop to sub 3500$ level is attained. None the less, I did state that, if we broke the 4000$ support, we will be able to see further direction to the downside and that we could not rule out a drop to the downside. I also told you guys that long positions in this current bear market are very risky and those that are conservative should stick with shorting from tops as there is more momentum to the downside currently for bitcoin. The rule of thumb for all my priority costumers is that they should look at momentum to the downside as an indicator of when the bull run will come - the quicker we drop to our long term downward targets that we have been stating for months and months, when most traders were looking for long opportunities to 19k.
- We have achieved many of our downward targets and most recently 3,333$ was achieved, which we have been calling for a while. Our next targets to the downside are now, 2800$,2100$ and THE FINALE OF THIS BEAR MOVE AT 1750$ BEFORE THE BITCOIN SHIP TAKES OFF AGAIN!
WEEKLY CHART BREAKDOWN
- As can be seen on the Weekly charts, BTC is ever so close to KEY SUPPORT zone of 2965$ and at this level we also have a supporting trend line dating as far back as October 2016! We can also see that bitcoin is stuck between two important resistance trend lines with relief zones pointing towards 2100-1750$.
- From a momentum perspective, we can see that bitcoin momentum is extremely oversold and is currently at all time lows across the board on momentum indicators.
DAILY CHART BREAKDOWN
- We can see that bitcoin broke through the 3650$, which was previously a support zone that helped push price to highs of 4500$. I stated in our previous breakdown that 4900$ could be achieved on FINEX but we only saw highs of 4500$ before the bears came in to drive price back down again.
- We feel that price could drop to lows of 2965$ before any relief from the bulls. This is necessary as this is the only area of key support for the bulls. Moreover, from a logical stand point this is in line with our earlier analysis of XBT, which showed a lot of bearish behaviour - remember, XBT and BTC are alike and follow each other in accordance. The only difference is that XBT is a price leader to the downside and FINEX is a price leader to the upside.
- We are ever so close to the key 20 level on RSI and this is in line with the fact that a pull down will be necessary in order to use blue trend line on RSI as support around these levels - we can see that bitcoin has bounced between these two trend lines on the daily.
4 HOURLY BREAKDOWN
- On the 4 hourly charts, we can see that the 3323$ indicated support was used successfully with RSI/ROC support coming in at 33 level. This was essential in taking us up to 3650$ level, which was the previous price floor, which help BTC price up. None the less, as ALL priority members should know, Floors become ceilings once they are broken. In classic fashion, we saw a rejection from the 3650$ level and this was inline with a rejection from the 37 level on RSI, which is a key area of resistance.
- In essence, I feel like there may be a double top created at 3650$ before a real crash to 3060$ and 2950$ respectively. I will explain why on the 1 hourly breakdown.
- Expect RSI/ROC to rise to 53 LEVEL before any real bearish price action begins on the finex exchange.
1 HOURLY BREAKDOWN
- On the 1 hourly charts, we can see a bullish divergence occurring in line with our assumptions from the 4 hourly charts. This is more reason to expect some sideway movement and range activity between 3320$ and resistance of 3650$ before any real bearish activity begins.
- We can also see that from a rejection of 3650$ the bears had very weak momentum and classically could only see a drop to 37 level RSI before seeing support at this area. In line with this, we can expect a rise to 56 level RSI before the next drop. This is in line with our initial bias of a rise to 3650$ and creating a double top at this zone before any real bearish activity begins. Moreover, for momentums sake, its always good to try and short BTC on the hourly at least above 56 level in order to give yourself enough room for movement to the downside. This helps reduce risk as you can move stops to entry at the ceiling and let the trade go forth without taking on additional risk.
TO SUM UP:
1. BTC MAJOR SUPPORT ZONE 2950-3060$ IN LINE WITH SUPPORTING TREND LINE SINCE OCT 2016.
2. BTC MAJOR RESISTANCE ZONE AT 3650$ AND A REJECTION FROM THIS ZONE WILL BE THE FIRST SIGN OF A SHORT.
3. EXPECT SOME RANGE ACTIVITY BETWEEN 3320-3650$ BEFORE ANY BREAKOUT.
4. OUR DOWNWARD FINAL TARGET HAS BEEN UPDATED TO 1750, WITH EARLIEST SIGNS OF SUPPORT TO COME AT 2100$
LINKED BELOW IS THE XBT ANALYSIS AND TRADE TO GO WITH THIS!
ENSURE TO FOLLOW OUR INSTAGRAM PAGE DOWN BELOW AND CLICK THE LINK IN THE BIO FOR OUR VIP CHANNEL TO STAY UP TO DATE!
Welcome to another episode of our favourite show - bitcoin brought to you by FELIX!
ROUND UP OF OUR MOST RECENT BREAKDOWN
- Following our most recent price top-down analysis for Bitcoin/XBT, I stated that we could intra-day trade the wedge, which bitcoin was stuck in and that I was in favour of a break upwards towards 4.9k before the drop to sub 3500$ level is attained. None the less, I did state that, if we broke the 4000$ support, we will be able to see further direction to the downside and that we could not rule out a drop to the downside. I also told you guys that long positions in this current bear market are very risky and those that are conservative should stick with shorting from tops as there is more momentum to the downside currently for bitcoin. The rule of thumb for all my priority costumers is that they should look at momentum to the downside as an indicator of when the bull run will come - the quicker we drop to our long term downward targets that we have been stating for months and months, when most traders were looking for long opportunities to 19k.
- We have achieved many of our downward targets and most recently 3,333$ was achieved, which we have been calling for a while. Our next targets to the downside are now, 2800$,2100$ and THE FINALE OF THIS BEAR MOVE AT 1750$ BEFORE THE BITCOIN SHIP TAKES OFF AGAIN!
WEEKLY CHART BREAKDOWN
- As can be seen on the Weekly charts, BTC is ever so close to KEY SUPPORT zone of 2965$ and at this level we also have a supporting trend line dating as far back as October 2016! We can also see that bitcoin is stuck between two important resistance trend lines with relief zones pointing towards 2100-1750$.
- From a momentum perspective, we can see that bitcoin momentum is extremely oversold and is currently at all time lows across the board on momentum indicators.
DAILY CHART BREAKDOWN
- We can see that bitcoin broke through the 3650$, which was previously a support zone that helped push price to highs of 4500$. I stated in our previous breakdown that 4900$ could be achieved on FINEX but we only saw highs of 4500$ before the bears came in to drive price back down again.
- We feel that price could drop to lows of 2965$ before any relief from the bulls. This is necessary as this is the only area of key support for the bulls. Moreover, from a logical stand point this is in line with our earlier analysis of XBT, which showed a lot of bearish behaviour - remember, XBT and BTC are alike and follow each other in accordance. The only difference is that XBT is a price leader to the downside and FINEX is a price leader to the upside.
- We are ever so close to the key 20 level on RSI and this is in line with the fact that a pull down will be necessary in order to use blue trend line on RSI as support around these levels - we can see that bitcoin has bounced between these two trend lines on the daily.
4 HOURLY BREAKDOWN
- On the 4 hourly charts, we can see that the 3323$ indicated support was used successfully with RSI/ROC support coming in at 33 level. This was essential in taking us up to 3650$ level, which was the previous price floor, which help BTC price up. None the less, as ALL priority members should know, Floors become ceilings once they are broken. In classic fashion, we saw a rejection from the 3650$ level and this was inline with a rejection from the 37 level on RSI, which is a key area of resistance.
- In essence, I feel like there may be a double top created at 3650$ before a real crash to 3060$ and 2950$ respectively. I will explain why on the 1 hourly breakdown.
- Expect RSI/ROC to rise to 53 LEVEL before any real bearish price action begins on the finex exchange.
1 HOURLY BREAKDOWN
- On the 1 hourly charts, we can see a bullish divergence occurring in line with our assumptions from the 4 hourly charts. This is more reason to expect some sideway movement and range activity between 3320$ and resistance of 3650$ before any real bearish activity begins.
- We can also see that from a rejection of 3650$ the bears had very weak momentum and classically could only see a drop to 37 level RSI before seeing support at this area. In line with this, we can expect a rise to 56 level RSI before the next drop. This is in line with our initial bias of a rise to 3650$ and creating a double top at this zone before any real bearish activity begins. Moreover, for momentums sake, its always good to try and short BTC on the hourly at least above 56 level in order to give yourself enough room for movement to the downside. This helps reduce risk as you can move stops to entry at the ceiling and let the trade go forth without taking on additional risk.
TO SUM UP:
1. BTC MAJOR SUPPORT ZONE 2950-3060$ IN LINE WITH SUPPORTING TREND LINE SINCE OCT 2016.
2. BTC MAJOR RESISTANCE ZONE AT 3650$ AND A REJECTION FROM THIS ZONE WILL BE THE FIRST SIGN OF A SHORT.
3. EXPECT SOME RANGE ACTIVITY BETWEEN 3320-3650$ BEFORE ANY BREAKOUT.
4. OUR DOWNWARD FINAL TARGET HAS BEEN UPDATED TO 1750, WITH EARLIEST SIGNS OF SUPPORT TO COME AT 2100$
LINKED BELOW IS THE XBT ANALYSIS AND TRADE TO GO WITH THIS!
ENSURE TO FOLLOW OUR INSTAGRAM PAGE DOWN BELOW AND CLICK THE LINK IN THE BIO FOR OUR VIP CHANNEL TO STAY UP TO DATE!
