MarcPMarkets

BTCUSD: Watching For Buyers At 9280 Support?

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
BTCUSD: Bearish momentum is in play now that the previous bullish trend line and 10754 support have been broken with conviction. This bearish scenario is still limited by the structure that this market is within which offers two specific levels to watch for a reversal.

This kind of move scares people which is good for others who want to buy at better prices. In my previous report I wrote about possible strength hidden near the double top . I did not write that this market was strong.In fact I wrote about letting the market show its hand, and that this bearish scenario was possible IF the market broke below 10754. Letting the market prove itself costs money, because it means you have to give it room to breath. If you are the type of trader that can't afford to let the market breath, or playing too close to the vest, you are going to have a much tougher time participating in the favorable market moves as well.

Now that we have a scared crowd, the question is where are they going to get shaken out, in other words, where are the extremely prices relative to the current structure in place? The double top that is now confirmed is a bearish formation, and it implies further weakness UNTIL another signal or formation negates it. The first step to anticipating this type of price action is to first locate where it is most likely to happen. 9280 is the swing low that has potential to attract buyers. As I write this, price is moving toward this level without much hesitation, but remember this large bearish candle still has plenty of time to close. It is the close that matters more than where price is intra candle.

The second level to watch is the 8659 extreme support boundary. Anywhere between the 9280 low and this extreme level is where new selling enters the market (break out traders) and where scared money often gets shaken out. This is the high probability reversal area, where I want to be prepared for a reversal signal to add to my long position.

In summary, even though the immediate momentum is bearish , that does not mean the long term outlook has changed. The broad double top is in play, until it gets cancelled out. Minor sell offs like the one occurring at the moment are normal and healthy, no matter what the hype-sters are saying. As long as the broader outlook and premise are still intact, bearish activtiy such as this is more likely to lead to a lower risk buying opportunity, which will not be so obvious on a chart. Can the market collapse altogether? Sure, anything can happen, but I am willing to bet that prices will be higher in the long run. Part of positioning yourself for a broader move is to know where the prices are with the greatest likelihood of reversal, from there is it a matter of waiting for the market to prove itself, and once it can, you have to be able to take the risk in an environment of imperfect information.

Questions and comments welcome.
Marc Principato, CMT |Author: Analyze Any Financial Market Like The Pros Using Price Action| http://www.Priceactiontraders.net | Cofounder http://www.seekingcryptos.com (S.C.)





this support range is very weak :) must fail
+1 Reply
BRRD tungha1
@tungha1, until today I felt otherwise but I'm agreeing now.

I've closed all longs in profit.

In cash now looking for another major leg down to around $4000 within several weeks.
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Hello,
thanks for analyse , why 8659 ? i see 8900 price range fibonacci and i see 8200 price range fibonacci i just could not understand 8659 price range ?

checked 4 hours chart and i saw there 8659 price range support line but Not so powerfull as i saw

if you explain 8659 magic i will b glad thanks
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tungha1 ribame4
@ribame4, You should not use fibo to predict Support or resistance range. I usually use Volume profile. And I had to accurately predict the bottom 8k and 6k are major support.
Now, BTC will come back to major support 6k. If 6k support fail, 4k5 and 2k8 are the next major support.
Support range from 8k6 to 9k2 is weak. be careful.
Strong support from 7k6 - 6k.
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ribame4 tungha1
@tungha1, what do you mean volume profile ? is that indicator ? or you mean just volume ?
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Hopefully the SEC can reign in bad industry players who are destroying crypto like Coinbase
+1 Reply
A nice effect of this drop was to send shorter hourly timeframes (6, 4 and 2) that had recently reached overbought on RSI into oversold.

12hr and longer haven't been overbought since the end of last year.
+1 Reply
little confused about taking profit.
initially your purchases showed losses of as much as 50%, so why would you sell to yield a single digit percentage profit? Because the risk/ reward in that case is very asymmetric. like selling options to gain small amounts until you are wiped out by the big one.
I'm not being critical - just don't get why you'd risk so much to gain so little
Thanks
+1 Reply
Clearly something “unnatural”, or at least out of character with things. Average volume has been roughly 2,000 per 4 hours, whereas the “dump” 4-hour time period had volume over 19,000!
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Mikelikescrypto satertrading
@satertrading, yeah I dunno what happened with binance exactly, did the bot manipulation drive the price down, or did panic selling occur when binance hiccuped?

What the FUD is going on? I'm hold either way. looks like a ABCDE symmetrical triangle to me.
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