Bitcoin is trading at a consolidation between 7580 and 7260 and has been since the big pump in Bitcoin that brought us from 6360 to around 7550 in one swoop. Due to the nature of the move, the consolidation has been proof that bulls are maintaining price at the highs. As I mentioned above, is it the public/retail overexcited people being lured into the final part of a short term market cycle lifespan, or is this sustained pressure by big money? Well, with the on the cards, followed by the , there has been reason for up move fundamentally speaking too. But for now, I'll stick to what I can prove... Let's look at the behavior. on the 4 hour chart showing a rounded bottom has taken place thus far, and it does look neat. The rounded bottom alone isn't a major thing for me, but what does make it appealing to me is a side-wards resistance line, that appears to be acting as a support line. Whilst this doesn't mean we are going to the "moon", it does mean that at least we know now that if price breaks BELOW this level, then we can simply scrap the rounded bottom theory because it was negated by the side-wards support failing, and we can just watch for another set up... For this reason the line is a very key indicator to short term market sentiment, which is exactly what we should be looking at when the market is consolidating as is, especially for a volatile marketplace like Cryptocurrency, it's like a holy grail to have this indication.
If price breaks below 7330, and retests the current side-wards support line as a resistance at around 7440, then price will be trapped in a situation and chances are it'll correct. If price breaks the rounded top resistance with a close above around 7540 then this shows are are in a wave again. This wave will last at least up to 7720. However, if it breaks above 7720, it actually has potentially to be a 3 wave impulse and go as high as 8400, but this is the best scenario.
Where do you think price is going? Leave a chart in the comments section and let's share our ideas!
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Thank you all your support.
Price will now either:
- Correct to the downside to the support zone at 6870.
- Trade upwards again and retest the side-wards support line as a new resistance before then breaking down to 6870.
To people who are commenting "We can go up or down then thanks!" are worrying me right now.. :-(... My analysis says above this line bull and below bearish. This line determined the entire trend and anyone with even basic Trading/Technical Analysis knowledge realizes this.
Anyone who thinks that you shouldn't consider both sides of the trade are about as logical as people who trade without stop losses. After all if the trade can only go one way, why bother using a stop-loss right?
If anyone only sees that there's 2 sides of the trade and doesn't see the actual talking point of the analysis, then you urgently need my trading course, I can set you all from beginner trading standard all the way to my professional trading level, and you will begin making profits for yourselves :-)
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To those who see the point of this analysis, we are ready to trade and make profits now, let's keep an eye for this one and wait for our trade to come :-)
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Any close above indicates bulls are too strong, and I will reconsider this position. :-)
The bulls are being incredibly stubborn at the highs and does show bullish conviction, however this means NOTHING because price has still not broken above the resistance zone in my initial analysis at 7870. Until this happens, it's going to continue to be volatile.
Please leave a LIKE. :-)