After our recent successful trade in Bitcoin, we now need to reassess Bitcoins movements to best decide what to do next. If you remember from my last analysis, I expected a retest on support and a breakout move to the next structure resistance level. This trade went perfectly to plan and we was highly successful with this. Now that price is at the above horizontal resistance zone, price is somewhat at a juncture. This is because not only is the uptrend slightly extended, but also because the target I chose was exactly where the 200 major moving average began to act as a resistance, which was also predicted in my previous analysis. For this reason, we must now be nimble before placing a long position in Bitcoin to avoid becoming part of a bull trap.
Swiftly moving onto the grit of this analysis, Bitcoin is currently trading right at the horizontal resistance zone, coinciding with the 200 major moving average resistance between 6930 and 6820. As it stands the candlestick looks strong showing there was a crisp bullish move to my target without much objection. What goes up must come down. Logic dictates that now price has hit the resistance zone, it will need to catch it's breath again before a new pump.
Price will now do one of 2 things before the next move.
Firstly, price will correct from the horizontal resistance zone down to the side-wards support line, before bouncing off the line and using it as support, with a new upside move taking place. If this scenario happens, it shows the bigger buyers are still interested in pumping price and it is a safe bet, if, a little aggressive also.
Secondly, price could correct from the horizontal resistance zone, trade downwards, breaking the side-wards support line and into the previous horizontal support zone that the previous rally came off of, between 6280 and 6170. If price gets to this level, we want to see a quick, and sharp upside move. Any hanging around at this level after such recent upside would be suspicious and could be perceived as a total lack of interest.
Finally, price could NOT CORRECT AT ALL. There is absolutely no reason why price has to correct now, it just seems logical for it to do so, but this is in no way obligatory. If price breaks the resistance zone before having had any corrections, then simply wait for a retest of the resistance zone turned new support zone and buy from there. Either way, everyones a winner.
Feel free to leave a comment letting me know where you think price will go, I would be very interested to hear everyones thoughts.
This idea will continue to be updated if the idea receives sufficient attention.
Please leave a LIKE and FOLLOW. These are my motivation to post more content. :-)
Swiftly moving onto the grit of this analysis, Bitcoin is currently trading right at the horizontal resistance zone, coinciding with the 200 major moving average resistance between 6930 and 6820. As it stands the candlestick looks strong showing there was a crisp bullish move to my target without much objection. What goes up must come down. Logic dictates that now price has hit the resistance zone, it will need to catch it's breath again before a new pump.
Price will now do one of 2 things before the next move.
Firstly, price will correct from the horizontal resistance zone down to the side-wards support line, before bouncing off the line and using it as support, with a new upside move taking place. If this scenario happens, it shows the bigger buyers are still interested in pumping price and it is a safe bet, if, a little aggressive also.
Secondly, price could correct from the horizontal resistance zone, trade downwards, breaking the side-wards support line and into the previous horizontal support zone that the previous rally came off of, between 6280 and 6170. If price gets to this level, we want to see a quick, and sharp upside move. Any hanging around at this level after such recent upside would be suspicious and could be perceived as a total lack of interest.
Finally, price could NOT CORRECT AT ALL. There is absolutely no reason why price has to correct now, it just seems logical for it to do so, but this is in no way obligatory. If price breaks the resistance zone before having had any corrections, then simply wait for a retest of the resistance zone turned new support zone and buy from there. Either way, everyones a winner.
Feel free to leave a comment letting me know where you think price will go, I would be very interested to hear everyones thoughts.
This idea will continue to be updated if the idea receives sufficient attention.
Please leave a LIKE and FOLLOW. These are my motivation to post more content. :-)
Comment:
This analysis went perfectly to plan with my indication to go lower took place.
Price is moving down in accordance with our previous update. Bitcoin had an upside move after hitting a low at 6420, correction slightly against the short term bearish impulse leg, then the bears jumped back in again.
Price will now make a downside move to the horizontal support zone as predicted between 6370 and 6270, then I will consider my options.
All updates will now be posted on my latest Bitcoin idea and not here.
Please leave a LIKE and FOLLOW, I'd really appreciate it. :-)
Price is moving down in accordance with our previous update. Bitcoin had an upside move after hitting a low at 6420, correction slightly against the short term bearish impulse leg, then the bears jumped back in again.
Price will now make a downside move to the horizontal support zone as predicted between 6370 and 6270, then I will consider my options.
All updates will now be posted on my latest Bitcoin idea and not here.
Please leave a LIKE and FOLLOW, I'd really appreciate it. :-)
Just because there is candlestick reversal signals at this level, this does NOT serve as a confirmation for a buy. It's simply a take heed signal.
The question now is, will price find support at this level, or will it break below the side-wards support to the lower horizontal support one at 6270.
I will update this idea further if it receives sufficient attention.
Please leave a LIKE and FOLLOW I'd really appreciate it.