Hi guys, thank you for reading my analysis on Bitcoin!
My last idea published was showing you guys the similarities I was seeing between the top of this rally and the top of the April 2018 rally.
So far it is actually following that fractal very well and I suggest you take a look at it (posted below).
I am excited to see that we got a break of the rising wedge as I was anticipating this all week and had my shorts opened around $8,700.
As you can see on the chart, price has found support at $7,700 which is at the 0.236 retracement of this entire rally.
I am expecting further pullback to my T1 box on the chart. At this point there is a confluence of the rising trend line, the 0.382 retracement, and the 50MA on daily.
There should be solid support there and we could see a fairly strong bounce and this could be the start point of correctional wave B.
Short positions have jumped quite a bit over the past few days (especially after yesterday’s drop) and if they keep rising really fast, a short squeeze becomes more likely and so we need to be aware of this at every major support level.
If T1 breaks, the next major rising trend line is at T2 which also coincides with the 0.618 retracement level. It’s possible we see the 200MA rise to this junction and provide additional support, but we will assess if we get closer to that.
For now, let’s focus on T1 and keep our expectations realistic. Even though I’ve been bearish over the past week or so, I am long-term bullish and I am looking to buy at these support levels.
Thanks for taking your time to read this, please give it a thumbs up if you find it useful!
Last idea:
My last idea published was showing you guys the similarities I was seeing between the top of this rally and the top of the April 2018 rally.
So far it is actually following that fractal very well and I suggest you take a look at it (posted below).
I am excited to see that we got a break of the rising wedge as I was anticipating this all week and had my shorts opened around $8,700.
As you can see on the chart, price has found support at $7,700 which is at the 0.236 retracement of this entire rally.
I am expecting further pullback to my T1 box on the chart. At this point there is a confluence of the rising trend line, the 0.382 retracement, and the 50MA on daily.
There should be solid support there and we could see a fairly strong bounce and this could be the start point of correctional wave B.
Short positions have jumped quite a bit over the past few days (especially after yesterday’s drop) and if they keep rising really fast, a short squeeze becomes more likely and so we need to be aware of this at every major support level.
If T1 breaks, the next major rising trend line is at T2 which also coincides with the 0.618 retracement level. It’s possible we see the 200MA rise to this junction and provide additional support, but we will assess if we get closer to that.
For now, let’s focus on T1 and keep our expectations realistic. Even though I’ve been bearish over the past week or so, I am long-term bullish and I am looking to buy at these support levels.
Thanks for taking your time to read this, please give it a thumbs up if you find it useful!
Last idea:
Comment:
On smaller time frame, we could possibly see move up to the red box between 8k-8,300 before dropping again.
Comment:
New analysis:
