Wake up yesterday to BTC pumping up approx 34% before getting close to 40%.
If it closed above 10K USD, we would have had the 3rd Highest % Gain in 1 DAY as Nic Carter Tweeted.
My first instinct when it pumping was FOMO, but I remained patient and watched BTC price movement through out the day yesterday and watched the Daily candle close this morning which was crucial. The power of Ichimoku which gave me some clues
The Daily candle that broke out of the cloud yesterday, unfortunately didn't have all rules met for a high probability breakout and as such we experienced a massive retracement.
4 Rules for a Cloud breakout (Highest Probability):
1. Price Breaks out of the Cloud and Closes Outside (Breakout but retraced and closed inside cloud - Failed)
2. Price above Kijun - brown line (yes)
3. CK Span above price level - purple line (yes)
4. Future Cloud Bullish? - red cloud (No Bearish)
The Bearish future was the giveaway yesterday that the move up may have been premature.
We are now in the cloud, where price generally consolidates, however you cannot deny that there is money waiting on the sidelines, we had added approx. 70 billion to the market cap before the retrace and a move from here to the upside is more than possible.
For now we must observe the structure of the market and watch for a twist on our cloud future and look for our signals indicating a change in momentum. We have tenkensen/kijun locked tight together on daily, on lower time frames this is a bullish tk cross (tenken sen line above kijun - blue above brown), however higher time frames long wick and potential doji forming showing indecision potential rejection.
Now we must wait and watch this potential change in momentum
Mattchimoku
*Not in any way trading advice, consider my personal perspective/views only*
If it closed above 10K USD, we would have had the 3rd Highest % Gain in 1 DAY as Nic Carter Tweeted.
My first instinct when it pumping was FOMO, but I remained patient and watched BTC price movement through out the day yesterday and watched the Daily candle close this morning which was crucial. The power of Ichimoku which gave me some clues
The Daily candle that broke out of the cloud yesterday, unfortunately didn't have all rules met for a high probability breakout and as such we experienced a massive retracement.
4 Rules for a Cloud breakout (Highest Probability):
1. Price Breaks out of the Cloud and Closes Outside (Breakout but retraced and closed inside cloud - Failed)
2. Price above Kijun - brown line (yes)
3. CK Span above price level - purple line (yes)
4. Future Cloud Bullish? - red cloud (No Bearish)
The Bearish future was the giveaway yesterday that the move up may have been premature.
We are now in the cloud, where price generally consolidates, however you cannot deny that there is money waiting on the sidelines, we had added approx. 70 billion to the market cap before the retrace and a move from here to the upside is more than possible.
For now we must observe the structure of the market and watch for a twist on our cloud future and look for our signals indicating a change in momentum. We have tenkensen/kijun locked tight together on daily, on lower time frames this is a bullish tk cross (tenken sen line above kijun - blue above brown), however higher time frames long wick and potential doji forming showing indecision potential rejection.
Now we must wait and watch this potential change in momentum
Mattchimoku
*Not in any way trading advice, consider my personal perspective/views only*