VaidoVeek

BITCOIN | $8,200+, Wait For Confirmation!

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Another analysis and other possible patterns around the $8,000.

You should remember that the last Weekly candle close gave us a 66% probability, over a small sample size, that the price may go to the higher levels. This is our first tiny indications but we need some confirmations do be more secure about that because, as said, the sample size is tiny.

Overall, to trade on the markets we should know how to enter into the trade. Basically, there are two major options:
1. Reversal trades - trades where you should search through the criteria the strong areas where the smaller wave/trend may end to jump into the bigger trend.
2. Breakout trades - different chart patterns and price levels allow us to jump into the bigger waves which will guide us into future profits but only after(!) we have identified the breakout area and after(!) we have got a confirmation through the candle close.
At the moment we should look at the trade opportunities considering that point 2.

We should search confirmations from smaller timeframes and if I say smaller then the 4H is the smallest timeframe on BTC price graph, then Daily and etc. There you can trust more securely those patterns and breakouts confirmations.

As you probably have noticed, again the Head and Shoulders . This time it is Inverted Head & Shoulders ( IHS ) and it is a bullish chart pattern. To be said at first - that doesn't mean almost anything that this pattern formation is currently there. Almost? Almost because it could be an indication that this pattern helps us in further movements and you should be prepared after the pattern is completed. The IHS (and also regular Head and Shoulders ) is ready, completed, triggered only(!) after the neckline breakout! Before that, it is just an indication/alert for you: "Soon we might get something" you should have this kind of mindset before that breakout from the neckline.

So, the possible IHS is marked on the chart and it starts to work after the neckline breakout. The breakout area should stay slightly above $8,200. If the 4H candle gets a close around the green area then it should be valid. Currently, IHS is pretty beautiful because the shoulders are formed exactly in the strong gray area. The gray area is strong because the price has printed only rejections and only strong/powerful candles breakthroughs on this area. So, a pretty good starting point but let's make a little summary about the pattern breakout. There is the first green box just above the $8,200 and if we get a candle close inside or slightly above of it then we have:
1. A break above the round number $8,000
2. A break above the strong price level $8,200
3. A break above the IHS neckline which triggers the pattern
4*. Breakout is supported with EMA golden grosses on the Daily chart .
5*. And if we add here the mentioned 66% probability from Weekly chart then this breakout looks pretty powerful.


If those breakouts have occurred then the price has to print new long-term higher high which stays above the $8,489 and actually the rally to the $10,000 may start.

If the Bitcoin price doesn't reach above the IHS neckline, if the strong area (gray zone at $7,560-$7730) doesn't hold the price anymore and if the price starts to fall lower from a bit subjective trendline then you should be worried. Another 4H candle close below $7,400 might be a place where the panic button gets triggered.

Currently, can't do anything we just have to wait! I just wait for that breakout upwards which gets confirmed after the 4H candle close above $8,200!


Feel free to support my effort by hitting the "LIKE" button, it is my only fee from You!

Have a nice day,
Cheers!

"Putting on a winning trade or even a series of winning trades requires absolutely no skill. On
the other hand, creating consistent results and being able to keep what we’ve created does
require a skill. Making money consistently is a by-product of acquiring and mastering mental skills."
– Mark Douglas


*This information is mostly used for educational purposes only!
Comment: I forgot to mention it before but usually the Inverted Head and Shoulders is a reversal pattern but currently, it has start form on the top of the trend and may act as a continuation pattern! Definitely, the current confirmation wouldn’t be so strong if there is only the neckline breakout, luckily there are other strong price levels exactly around the neckline (round number, strong price level) which will confirms that breakout!
Comment: Currently, there are not any significant breakout confirmations, the price has dropped pretty sharply into the strong area comparing a few days volume but soon we might get something and I will make a bit bigger update, a pattern which has guided the price into the action.
Comment: New BTC update:

Cheers!
Same here!
Reply
99% of BITCOIN traders have NO Trading Education or experience or Forex True knowledge
They Trade on their new swanky Samsung galaxy phones and think they do not need professional charts or education
They have seen Bitcoin go from strength to to strength and are oblivious due to lack of Bitcoin historical data and trading experience
Many many have bought @15k plus and are waiting for the bounce to save themselves
With the majority of Bitcoin trader have only ever traded sweets and lollies in the school ground in the past
But ask a Bitcoin traders he is , KING < GURU LORD MASTER PRO he is neither or None
Bitcoin traders have NO respect for any opinion barr their own and truly think that they will foolishly see +100k as many post here
This trade has no idea
Reply
Downward Pressure Continues Till May 25 or May 27 Before Pump. It's possible to June 3rd from what I'm seeing in the 3-Day TF.



Let's Have a Look at ENERGY in the 4-Day, 9-Day and 2-Week TF's.

Reply
Hello Vaido. Well at the moment the Right Shoulder broke on your chart and I believe the pattern is near breaking a pivotal support. The selling can easily escalate to 7000 - 6870.

Reply
Bitcoin Ascending Triangle in 1D Timeframe

Reply
Its a reversal pattern not a continuation pattern.
+2 Reply
Nice analysis. This is what I'm looking at

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