BTC : Is the bottom in? (Multiple time frame analysis)
Hello fellas, welcome to another detailed technical analysis update about bitcoin. Once again, yesterday we saw a huge bullish momentum that make the price surged to the area of confluence which is around $7500 - $7600 region. This was surprising me because just to be honest with you. I never expect that way. But, it's alright as long as our position has stopped in profit of course. Now, the main question is whether it's the reversal pattern or is it just a relief rally with a manipulation in it? Let's see here!
First analysis will be on the weekly based analysis which could show us more confirmation on what the major trend is. And from this time frame, I can give you the 2 important things that can be very important to be our benchmark for key levels.
The first highlighted thing is the down trend channel that however is still respected by the price, This channel Has held the price since June 2019, it's the 6 months channel! and of course, we must as a trader respect it and it will be very ignorant to me to say that this isn't important.
The 2nd highlighted region will be the white zone. Looking at this region, it was becoming a support which has broken already and clearly it's now become a huge resistance and what more interesting is this region is having an alignment with the median line of the channel. And mostly, the price will be rejected when it tries to retest this region again.
A lot of people will think that this current down trend channel that holds the price is the pattern of bear flag. But, even if we're trading at bear flag, the key point will be when the price break the upper line of the channel to confirm this bear flag.
That's why I will choose to be realistic and wait until the price breaks the green region which is still far from our level right now to confirm the bullish bias..
First analysis will be on the weekly based analysis which could show us more confirmation on what the major trend is. And from this time frame, I can give you the 2 important things that can be very important to be our benchmark for key levels.
The first highlighted thing is the down trend channel that however is still respected by the price, This channel Has held the price since June 2019, it's the 6 months channel! and of course, we must as a trader respect it and it will be very ignorant to me to say that this isn't important.
The 2nd highlighted region will be the white zone. Looking at this region, it was becoming a support which has broken already and clearly it's now become a huge resistance and what more interesting is this region is having an alignment with the median line of the channel. And mostly, the price will be rejected when it tries to retest this region again.
A lot of people will think that this current down trend channel that holds the price is the pattern of bear flag. But, even if we're trading at bear flag, the key point will be when the price break the upper line of the channel to confirm this bear flag.
That's why I will choose to be realistic and wait until the price breaks the green region which is still far from our level right now to confirm the bullish bias..
Comment:
And the last time frame that I'll cover is the 4 hours chart, Most of the swing trader usually use this time frame as the benchmark to see current bias.
Looking at the 4 hours time frame, I'll assume a potential huge descending triangle is in play. we've seen a temporary break to the upside from the price but, it claimed back the resistance on the next candle right after touching the golden pocket zone!
So, after all of the time frame that I see, there is still a huge domination by the bear on every key time frame. There is still too premature to assume that the bear market has ended with this current fact, and we must see much stronger price action to give a confirmation of the up trend moves.
That's why I will sit back and see what the price will do in near future.
And the last time frame that I'll cover is the 4 hours chart, Most of the swing trader usually use this time frame as the benchmark to see current bias.
Looking at the 4 hours time frame, I'll assume a potential huge descending triangle is in play. we've seen a temporary break to the upside from the price but, it claimed back the resistance on the next candle right after touching the golden pocket zone!
So, after all of the time frame that I see, there is still a huge domination by the bear on every key time frame. There is still too premature to assume that the bear market has ended with this current fact, and we must see much stronger price action to give a confirmation of the up trend moves.
That's why I will sit back and see what the price will do in near future.
And this is the daily chart which for me is having a very important confirmation and I add the dynamic line of EMA 21.
What looks interesting is that when I use the body to body connecting method to figure out the potential resistance trend line for lower time frame, I found out that this resistance trend line has an alignment with the EMA 21 as the dynamic resistance. Accidentally, we saw the temporary rejection when the price touched this region.
Please note that the EMA 21 on daily chart has moved just above the price since November 11th. It's a 40 days resistance. should the price respect it?