Again, I'm here to give you a little overview of the current market situation.
The market is very weird, BTC flying, altcoins are on the downswing (today they have started to make first steps to higher prices), the BTC price has cracked strong resistances after another, etc.
Just to bring technically good levels, I'm here to make a little technical analysis.
The resistance area which was around the $6,000 was on my watchlist for a while but it got weaker every time after someone made an idea post to the TradingView: "Watch this level!", "Look at $6k!!" If everybody can see those levels then market makers can use it easily. So, that's why I have been a bit cautious and haven't call any significant selling areas after the breakout from $5,500, but let's jump quickly to the current action, things can quickly change.
Fiannly there is an area where is one of my favorite price action criteria, an important trendline.
The black trendline which has three clean touches from last year (orange boxes). It has worked nicely as a support level and probably it plays also a significant role in the current resistance area. The significant part is the strong candle breakthrough in 2018 November. This strong candle shows that this level, this trendline is really strong because there was needed a hell of a power to push the price downwards. Now, it becomes a resistance and the price is really on the edge to make a correction so, it could be a nice area where it can start it. It should be a classical retest situation which took more than half a year!
Parallel channel projection, drawn from the bodies to remove market noise!
The major trendline is the bottom, copy/paste to the higher green point and we get a crossing are just above the current price with the black trendline, around $6,500.
Between light blue lines - Monthly Highs/Lows
There are 4 Monthly highs/lows. Not so significant but it matching exactly with our trendlines crossing area and still, it shows that the area is capable to print new lows and highs, which is a great confirmation!
The round number $6,500
It played a significant role in the second half of 2018. Price drifted between 6k and 6.5k, so, an area which should be on the chart to make a crossing area a bit stronger!
There are more some sloppy criteria but not so significant to mark those, only remarkable criterion is the Daily RSI Divergence, which is still on the chart!
Summary: The most important criteria are the trendline, which has a really powerful candle breakthrough (break below of it) and now it should work as resistance especially after that awesome price pump, and the parallel channel crossing area. There are other criteria to make that area a bit stronger but please, be patient. As I said before, the price has cracked resistance after another and easily it can be the next one. To be more secure about the resistance, you should wait for bearish price action around the marked area, around the crossing area. Bearish price action = bearish candlestick patterns on the higher(!!) timeframes 4H or Daily, bearish chart pattern breakouts on the 1H or 4H.
"If someone or something is against you and causes you pain, how are you likely to respond?
You’ll feel compelled to fight, but what exactly are you fighting? The market is certainly not
fighting you. Yes, the market wants your money, but it also provides you with the
opportunity to take as much as you can."
– Mark Douglas
Hopefully, it was helpful, feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice day,
Cheers!
*This information is not a recommendation to go "LONG" or "SHORT", it is mostly used for educational purposes only!
The market is very weird, BTC flying, altcoins are on the downswing (today they have started to make first steps to higher prices), the BTC price has cracked strong resistances after another, etc.
Just to bring technically good levels, I'm here to make a little technical analysis.
The resistance area which was around the $6,000 was on my watchlist for a while but it got weaker every time after someone made an idea post to the TradingView: "Watch this level!", "Look at $6k!!" If everybody can see those levels then market makers can use it easily. So, that's why I have been a bit cautious and haven't call any significant selling areas after the breakout from $5,500, but let's jump quickly to the current action, things can quickly change.
Fiannly there is an area where is one of my favorite price action criteria, an important trendline.
The black trendline which has three clean touches from last year (orange boxes). It has worked nicely as a support level and probably it plays also a significant role in the current resistance area. The significant part is the strong candle breakthrough in 2018 November. This strong candle shows that this level, this trendline is really strong because there was needed a hell of a power to push the price downwards. Now, it becomes a resistance and the price is really on the edge to make a correction so, it could be a nice area where it can start it. It should be a classical retest situation which took more than half a year!
Parallel channel projection, drawn from the bodies to remove market noise!
The major trendline is the bottom, copy/paste to the higher green point and we get a crossing are just above the current price with the black trendline, around $6,500.
Between light blue lines - Monthly Highs/Lows
There are 4 Monthly highs/lows. Not so significant but it matching exactly with our trendlines crossing area and still, it shows that the area is capable to print new lows and highs, which is a great confirmation!
The round number $6,500
It played a significant role in the second half of 2018. Price drifted between 6k and 6.5k, so, an area which should be on the chart to make a crossing area a bit stronger!
There are more some sloppy criteria but not so significant to mark those, only remarkable criterion is the Daily RSI Divergence, which is still on the chart!
Summary: The most important criteria are the trendline, which has a really powerful candle breakthrough (break below of it) and now it should work as resistance especially after that awesome price pump, and the parallel channel crossing area. There are other criteria to make that area a bit stronger but please, be patient. As I said before, the price has cracked resistance after another and easily it can be the next one. To be more secure about the resistance, you should wait for bearish price action around the marked area, around the crossing area. Bearish price action = bearish candlestick patterns on the higher(!!) timeframes 4H or Daily, bearish chart pattern breakouts on the 1H or 4H.
"If someone or something is against you and causes you pain, how are you likely to respond?
You’ll feel compelled to fight, but what exactly are you fighting? The market is certainly not
fighting you. Yes, the market wants your money, but it also provides you with the
opportunity to take as much as you can."
– Mark Douglas
Hopefully, it was helpful, feel free to support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice day,
Cheers!
*This information is not a recommendation to go "LONG" or "SHORT", it is mostly used for educational purposes only!
Comment:
After that massive pump upwards, we need to collect more data to make some kind of technical analysis about the movements on the market but looks like it is time to move sideways, at least for a while. The price may draw to us a bearish chart pattern called Bear Flag, from where we can search for some conclusions.
Currently, the price has made the biggest retracement since the start of the rally from $4,000.
At the moment it has started to move in the ascending channel which will be the confirmation if it makes a break below of it. To search some higher resistance levels is almost pointless, it is like the end of 2017. Then we had also a massive bull run and only good analysis was made considering chart patterns!
Currently, the price has made the biggest retracement since the start of the rally from $4,000.
At the moment it has started to move in the ascending channel which will be the confirmation if it makes a break below of it. To search some higher resistance levels is almost pointless, it is like the end of 2017. Then we had also a massive bull run and only good analysis was made considering chart patterns!
Comment:
New ideas & new areas on the BTC chart:
Regards!
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