__________________________________________________________________________________________________________________________________________________________________ Hello traders investors and community, today I discuss with you an important observation which I made on the daily bitcoin chart. As bitcoin is trading in a consolidation again just as seen before the major drop came which dropped bitcoin to the 7800 levels, there are some important things to look at. __________________________________________________________________________________________________________________________________________________________________ Bitcoin is trading in a declining channel with several lower-highs and lower-lows already formed in the past. After bitcoin formed the triangle on a weak support base which finally broke badly to the downside after the bull-trap, bitcoin is consolidating again now. In my chart, you can see the reason for the break-down marked with the horizontal trend-line and the bull-trap callout.
The higher-high which was formed in june was formed with high selling volume. Also before the break-down, we saw weak volume in the weak support zone. There is a reason why bitcoin cant establishes a new higher high, with bad volume more decline is likely to happen as we are still trading in bearish environments.
We formed the last lower-lower at the 7750 as you can see in my chart, the support which is building now looks similar weak to the last weak support range. So what can we expect in the next days? A bull move to the upside is likely, as you see in my chart, which is critical because bitcoin will directly trade into resistance at 8800-8900. There is major resistance at 8800-8900 also the upper trend-line of the orange parallel channel is marking serious resistance. With facing these important resistance levels a next bull-trap will confirm as there are not many solid bull signs for a successful reversal.
The orange channel you see in my chart is critical, I can't see any bullish continuation without taking out this channel. This channel has to be taken out for considering the bullish scenario, without this it is still a bearish declining channel that trades to the downside. __________________________________________________________________________________________________________________________________________________________________
This was my analysis, hopefully, everybody can profit from the information, have a good time and of course good trading profits! For more market insight feel free to support. Information provided is for educational purposes only and should not be used to take action in markets. __________________________________________________________________________________________________________________________________________________________________
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Information provided is only educational and should not be used to take action in markets.
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ANALYSIS UPDATE: BITCOIN continued with the exact, same fractal formation as already formed in the past, however, this time BITCOIN continued with a much more volatile bounce off the weak support.
Since BITCOIN formed the next bull trap it continued as already within the fractal formation before breaking down into the lower levels to establish some support within the zones.
Nicely projected. I think we are in between 2 pivots - 10.3 will resolve the move to the upside and 8.5 will most likely confirm the bear trap.
Cheers Vince!
VincePrince
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@akublashvili, Great observation, thank you my friend.
jefskers
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Nice bars pattern (; starting to agree with this view more and more
I agree with your prediction but I still think it'll take a few more attempts to be able to crack the 7k's. If you look at the volume profile the concentration of buy's between the 7.7k and 8.1k was higher than the 9.5k and 10k range. I'm aiming to long up to 8.5k and then short down to 7.7k. Sorry I couldn't post my chart I couldn't figure out how to post screenshots
What do you think of this fractal?