I make a little overview of which areas are on my watchlist - where are the key levels, why they are key levels and etc.
After yesterday's scalp post I started to make another analysis, sadly I didn't post it but there was the key area $13,500, at least I told it to my friends :) I said that if it goes above of it then I DON'T KNOW where it may go!
From where it got a rejection?!
Usually, I don't like this historical blablablaa...but hopefully you find something educational from here.
Firstly, the channel. Drawn from the bodies and if you want to remove the market noise then the best plan is to use a line chart:
The key points are those two bottom black circles, copy paste to the ATH and we get a parallel channel. Channel upper trendline acted as a resistance.
Secondly, Fibonacci. Pulled from ATH to the 2018 bottom and the Fibonacci Golden ratio 62% matches exactly with the channel upper trendline:
Thirdly, the strong area. Those orange lines, on the image above, mark an area where the price has made a daily low 9 times.
The Bitcoin price dropped $2,500 and those were the major technical aspects.
The current situation.
It is highly risky to trade in that kind of a market situation, especially if the price is middle of important areas. There can be fast pumps and dumps which can scare you out or take you out of the trades. To trade it, we need high probability areas. Recently, BTC has respected nicely my technical analysis, definitely you can find some mistakes but in general, it has been good times.
The first stronger retracement area stays around $11,500 but this isn't so reliable anymore because the price has already touched it.
The next one around the $10,000 should be the strongest previous resistance levels which now becomes a support. There is:
- The trendline, pulled from the 10. June low
- The round number 10k should act as a resistance
- Strong resistance from May 2018 becomes support
- Fibonacci retracement level 62%
This is the area where I start to look more closely what's gonna happen.
The current market situation is not really good for short-term traders and we should be patient. Let the market print new data after the massive movements, let it print some patterns and etc.
I try to make updates from the lower timeframes but in general, my eyes are pointed $10,000-$11,000 because I think the price can go and test the recent highs. If BTC price can crack the key level $13,500-$14,000 then the previous ATH is not so lonely anymore, probably it finds a companion ;)
"Learning more and more about the markets only to avoid pain will compound his problems because the more he learns, the more he will naturally expect from the markets, making it all the more painful when the markets don’t do their part. Stop guessing, trade what you see!"
– Mark Douglas
Please, take a second and support my idea post by hitting the "LIKE" button, it is my only fee from You!
Best regards,
Vaido
After yesterday's scalp post I started to make another analysis, sadly I didn't post it but there was the key area $13,500, at least I told it to my friends :) I said that if it goes above of it then I DON'T KNOW where it may go!
From where it got a rejection?!
Usually, I don't like this historical blablablaa...but hopefully you find something educational from here.
Firstly, the channel. Drawn from the bodies and if you want to remove the market noise then the best plan is to use a line chart:
Secondly, Fibonacci. Pulled from ATH to the 2018 bottom and the Fibonacci Golden ratio 62% matches exactly with the channel upper trendline:
Thirdly, the strong area. Those orange lines, on the image above, mark an area where the price has made a daily low 9 times.
The Bitcoin price dropped $2,500 and those were the major technical aspects.
The current situation.
It is highly risky to trade in that kind of a market situation, especially if the price is middle of important areas. There can be fast pumps and dumps which can scare you out or take you out of the trades. To trade it, we need high probability areas. Recently, BTC has respected nicely my technical analysis, definitely you can find some mistakes but in general, it has been good times.
The first stronger retracement area stays around $11,500 but this isn't so reliable anymore because the price has already touched it.
The next one around the $10,000 should be the strongest previous resistance levels which now becomes a support. There is:
- The trendline, pulled from the 10. June low
- The round number 10k should act as a resistance
- Strong resistance from May 2018 becomes support
- Fibonacci retracement level 62%
This is the area where I start to look more closely what's gonna happen.
The current market situation is not really good for short-term traders and we should be patient. Let the market print new data after the massive movements, let it print some patterns and etc.
I try to make updates from the lower timeframes but in general, my eyes are pointed $10,000-$11,000 because I think the price can go and test the recent highs. If BTC price can crack the key level $13,500-$14,000 then the previous ATH is not so lonely anymore, probably it finds a companion ;)
"Learning more and more about the markets only to avoid pain will compound his problems because the more he learns, the more he will naturally expect from the markets, making it all the more painful when the markets don’t do their part. Stop guessing, trade what you see!"
– Mark Douglas
Please, take a second and support my idea post by hitting the "LIKE" button, it is my only fee from You!
Best regards,
Vaido
Comment:
New BTC analysis!
The rejection came perfectly from the mentioned area and here are the possible next moves! Wait for a candle close below the short-term counter trendline:
Regards!
The rejection came perfectly from the mentioned area and here are the possible next moves! Wait for a candle close below the short-term counter trendline:
Regards!
Possibly we can catch a scalping opportunity around $12,000:
Regards!