Let's look at the chart and the current signs I have marked there, what can we see? We can see that bitcoin is still in an overall weak up-trend-rally with low on the weekly and , the is falling the last days, this is normally a solid sign for a heavy dramatic price-move normally in the other direction! But as we are still in an up-trend I do not expect the dramatic pull-back to happen so soon, we can see a next rally the next days before the dramatic and heavy pull-back develops. The next strong resistance is at 650-EMA level it is also the resistance of the last high developed from bitcoin , this EMA-resistance should not be ignored and we can expect action at that level, therefore bitcoin will remain weak in this range and will have a hard time to get over the 650-EMA. From this resistance-level bitcoin has two possible outcomes, once it is a pull-back to the green support-level you can see in my chart and second it is a continuation of the weak up-trend to this heavy confluence-zone you can see in my chart marked with the orange box. There is plenty of resistance at that level so it shouldn't be ignored in either case when we visit this area. First, we have the 38.2 % Fibonacci-Resistance-Mark in that range which you can see marked in grey, then we have the 200-EMA which already confirmed before as resistance and we have the falling red-trend-line! Together these resistance-levels building the overall bearish-confluence-zone which will be highly when touched, the good news is that we can short this level with a good risk-reward-ratio and a high possibility to see minimum a middle-term price-action with bitcoins price movement. Okay let's counter everything together what we expect now, firstly we will see a rally to the 650-EMA, when touched in this range it will highly likely confirm as resistance! When this scenario does not develop and we get only a small pull-back there is a possibility for bitcoin to run into the big confluence-zone between 7670 and 8265, when we visit this area there is a high probability for a pull-back which can be traded with a good risk-reward on the SHORT-side when the given scenario sets in I will definitely look for a decent short-entry.
My friends, this should give you a good overview of the current significant situation and where bitcoin has its important zones, I see many people calling for the moon providing in a week or two, this is factly not possible because we have heavy resistance-levels above the head which firstly has to be taken out from bitcoins developed price action and when considering the scenario that bitcoin develops to take out these resistance-levels as possible bitcoin will firstly have a long and hard time to get over the resistance and secondly has to confirm it properly. It is not difficult to say that bitcoin will hit the moon or the bottom in two weeks but this is mere unscientific speculation and we have to distance ourselves from that illogical and groundless approach to the markets, therefore, to look on the given situation with a clear head and take the trades with the highest possible outcome.
Alright my friends, thanks for watching, may all luck and happiness come to you and of course good trading profits. ;)
Don't forget as I always use to say: Success is a science; if you have the conditions, you get the result.
In this manner: FAREWELL
Information provided is only educational and should not be used to take action in the markets.
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