Yesterday the price got a rejection downwards from the strong resistance area around $5,200. I mentioned this area because it has worked recently as very strong support and yesterday it worked as a resistance, so, it should not be a surprising move to you.
Yesterday's Daily candle close formed a bearish candlestick pattern called Engulfing but it got a close above the $5k level. This 5k level looks like a very important price level to get further bearish confirmations. Luckily this is not the only one, a candle close inside the red area triggers several bearish chart patterns and bearish price actions.
It could be a final and decisive bearish confirmation around the 5k because it is just so powerful!
A 4H candle close(!!) inside or slightly below the red area makes a breakout from:
- The Head and Shoulders pattern: it is a bearish chart pattern and if the 4H candle gets a close below of it then the pattern is active and the price may take a direction downwards. It has very powerful shoulders exactly at the strong resistance area - $5,200
- The Ascending Channel: a candle close inside the red area confirms also a breakout from the channel, another bearish sign
- Recently nicely worked round number $5,000: since 5. April the price isn't closed below the 5k level on the 4H chart. It has tried 9 times but all those attempts were failed. So, if it gets a close below of it then it should give us also another bearish confirmation because bears have won a battle and they managed to push the price below the 5k level.
- If the candle gets a close inside the red area then we know that the yesterday's candle was a bearish candlestick pattern Engulfing which will supporting that powerful close below 5k level.
It is a very important area, watch it closely and it gets confirmed after(!!) the 4H candle close inside or slightly below the red area!
Because of the strong bearish setup, I have pointed out the target area.
The target area is also pretty powerful and if You are short then it would be a perfect spot to take some profits.
Target area consists of:
- Fibonacci Extension 161% at $4,538
- Fibonacci Retracement 38% at $4,591, pulled from the 2018 low point to the 2019 high point
- Fibonacci Retracement 62% at $4,481, pulled from last LH before the rally to the top
- EMA200 on the Daily at $4,673, on the 4H at $4,603
- Head and SHoulders pattern target around $4,400
- Curve trendline from the bottom should act as a support level (blue line)
This bearish view becomes invalid after a 4H candle close inside the green rectangle just above the strong resistance at $5,200. Bullish target remains the same - $5,777
Please, take a second and support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice week,
Best regards!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Yesterday's Daily candle close formed a bearish candlestick pattern called Engulfing but it got a close above the $5k level. This 5k level looks like a very important price level to get further bearish confirmations. Luckily this is not the only one, a candle close inside the red area triggers several bearish chart patterns and bearish price actions.
It could be a final and decisive bearish confirmation around the 5k because it is just so powerful!
A 4H candle close(!!) inside or slightly below the red area makes a breakout from:
- The Head and Shoulders pattern: it is a bearish chart pattern and if the 4H candle gets a close below of it then the pattern is active and the price may take a direction downwards. It has very powerful shoulders exactly at the strong resistance area - $5,200
- The Ascending Channel: a candle close inside the red area confirms also a breakout from the channel, another bearish sign
- Recently nicely worked round number $5,000: since 5. April the price isn't closed below the 5k level on the 4H chart. It has tried 9 times but all those attempts were failed. So, if it gets a close below of it then it should give us also another bearish confirmation because bears have won a battle and they managed to push the price below the 5k level.
- If the candle gets a close inside the red area then we know that the yesterday's candle was a bearish candlestick pattern Engulfing which will supporting that powerful close below 5k level.
It is a very important area, watch it closely and it gets confirmed after(!!) the 4H candle close inside or slightly below the red area!
Because of the strong bearish setup, I have pointed out the target area.
The target area is also pretty powerful and if You are short then it would be a perfect spot to take some profits.
Target area consists of:
- Fibonacci Extension 161% at $4,538
- Fibonacci Retracement 38% at $4,591, pulled from the 2018 low point to the 2019 high point
- Fibonacci Retracement 62% at $4,481, pulled from last LH before the rally to the top
- EMA200 on the Daily at $4,673, on the 4H at $4,603
- Head and SHoulders pattern target around $4,400
- Curve trendline from the bottom should act as a support level (blue line)
This bearish view becomes invalid after a 4H candle close inside the green rectangle just above the strong resistance at $5,200. Bullish target remains the same - $5,777
Please, take a second and support my idea post by hitting the "LIKE" button, it is my only fee from You!
Have a nice week,
Best regards!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Comment:
NEW BTC analysis:
Have a nice day!
Bearish confirmation area is still the same and from the bullish perspective, there are some heavy resistances just above the current price - Fibo level, channel middle point, etc. So, do not get too excited about this move what occurred yesterday.