Whats up traders, I hope you are all having a good weekend.
Here we have BTC/USD on the 4H chart.
Recently, price has been in a strong up move. Price has recently lost some of the momentum that created the bull run. On the 4H chart, it is clear that price is correcting after some upside.
Despite price having a big bull run, it is time for it to correct. I believe that price will now continue to stall to the sideways support level of 13540. When I looked further back at price action on the chart, I noticed that this pair has a tendency of correction before a strong rally again.
This trade could play out in 2 ways, I have outlined them below
-Price continues to rally to the upside to the upside target of 18990. Bare in mind if this plays out that there will likely be some corrections on the way to the upside target.
-Price may retest the upside resistance level of 15570 before the break down begins to the side-wards support of 13770
I am excited to see how this trade plays out.
I will update this analysis as the trade progresses.
In the related ideas, I have posted my other Cryptocurrency ideas. Please leave a like and comment, it would be highly appreciated.
Comment
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Price has formed a strong bullish candle right at the predicted correction level in my above chart. If candle closes a this level, I am expecting upside to begin, right where I predicted.
Everybody please bear in mind the difference price spreads between exchanges. Tom's example is with Bitstamp. Prices acrossing exchanges have been fluctuating between +- 1000 points depending on that exchange's transfer fees and trading fees. So yesterday, Kraken got to 1000 points higher than Bitfinex at 7am New York time, and then just this morning, it compressed to only 200 points higher than Bitfinex now at the localized bottom at $13,200. Please used cryptowat.ch for all the price relativities across exchanges. Coinbase, BTC-E, Okcoin, etc will trade with a premium because of their expensive transfer and trading fees. Please keep that in mind when we speak of where the "support" is.
josephtse
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@josephtse, *Correction - by BTC-e I meant Bitmex. Sorry!
TomProTrader
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@josephtse, ^ this comment is directly applicable to every single analysis you see on TradingView in Crypto currencies in existance. So make sure you all do your due diligence before you make a trade.
Just a side note anyway - The price perfectly rebounded off the support for this idea and went up exactly as predicted. But as Joseph has said, this will vary by exchanges.
Futures can change everything though huh. Like the chart with a short drop before high, but hard to tell what futures could do. Pop to 20k or drop to 13k, we’ll see!
i usually hoping your analysis is right but this time i hope it`ll at least go to recent ATH first before any major correction, im stuck at the recent ATH.
and what do you think about the bitcoin futures Tom? I think nobody know what will happened but what`s your opinion about this? will bitcoin go up even more for next 1-2month or will it make bitcoin go down even more?
thank you.