BTCUSD: Higher Low Can Lead To Inverted Head & Shoulders.

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
BTCUSD update: Price has retraced to the 6300 area which is serves as a minor support. As I wrote in today's S.C. report, this market is in position to establish an inverted head and shoulders pattern which is a long term bullish sign. Since there are no specific triggers to go long, we are still waiting see if price offers a buying opportunity around the 6K area.

This is a go and stop market, one that does not treat reactionary traders nicely. Understanding the type of environment and where to anticipate movements based on probability is key.

This is why we did not buy the consolidation break out going into the resistance zone . The risk of retrace was high and the situation did not fit the criteria of our swing trade plan.The question is where is the best place to get long since the retrace is in progress?

6167 to 5999 is the minor .618 support zone relative to the recent bullish swing. This would be a very convenient and high probability location for a reversal candle to appear. The other level is the 5669 reversal zone boundary which would be the extreme price scenario. This is when the market usually looks the ugliest and the weak hands are shaken.

In summary, if this market establishes a broader higher low formation around the current price, it could lead to a test of the 7120 reversal zone. As I wrote in my detailed S.C. report, this level serves as a reasonable point of reference for short term profit targets.

The broader formation is in line with our high probability location premise that we have been writing about since May. If it follows through, price can very well be on its way back to the 7381 resistance and beyond.

At S.C. we prepare and wait for the market to offer opportunities that fit within the scope of our risk profile. These opportunities are not isolated to one strategy, and is the reason why we accumulate inventory as well as take shorter term swing trades.

Many less experienced traders have a tough time in these markets because they rely on tools or information that focus on irrelevant price activity. Projected support and resistance , psychological numbers and chart patterns can provide a lot of value in a noisy environment where oscillators are much less effective.

Either way, prepare for scenarios rather than "predict" them. At least this way you put yourself in a position to let the market come to you.
Marc Principato, CMT |Author: Analyze Any Financial Market Like The Pros Using Price Action| | Cofounder (S.C.)

@MarcPMarkets , I am not an expert but trying to learn .... on the weekly ma30 is falling towards ma50. This happened in 2015 as I remember .... does this change the long term exp. to be bearish and btc is subject to more sharp downtrend action.. thanks
This is another bot manipulated multi stage sell off, time to spook all those who bought in over the last few weeks. Thats how it works.
Good objective analysis Marc. I've noticed (and I've been guilty of this myself) too many traders publish their ideas in a one-sided way. I've come to realize how important it is to consider both a bullish and a bearish scenario in every analysis. Thanks again!

Posted an update to my previous post that's inspired by Marc and Seeking Cryptos.
Black July. Bitcoin has always fallen this month
here we are again in that target zone, I think SC are not from this planet as all other experts in here are way off! It might bounce.
I appreciate your review
Hey Marc, I really appreciate your wisdom as always. Your perspective always contains a deeper lesson and brings sobriety to a world in which most people are intoxicated with greed and fear. Your actually the main reason I visit Trading View, and @goldbug1 keep it up!!
Tbox ansonphong
@ansonphong, I second this - these guys are the best of the best!
Please check the daily charts from 2011-2012 in qan . Tell me if it’s same pattern you see in bitcoin from 7k to 6 k. It’s a bottoming of a stock before a bull run . It looks very similar
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out