BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Yesterday I posted a bitcoin analysis where I expected BTC to take a quick tank to the downside from current levels, however price did indeed go to the side-wards resistance line and then later break down from there. Price did actually try and break the resistance line but stalled after breaking the line, creating a bull trap where the noobs got burned because they did not wait for a retest at side-wards resistance as support before entering. Due to this, bears came in heavy as well as people closing weak longs causing a strong down move amidst the breakout, back below the side-wards resistance again.

There's some things happening in BTC now that need to be considered before making any new logical move. They are:

- Price action saw a very strong morning star signal yesterday - this shows that in the SHORT term, the bulls are in control. The signal is still confirmed from a technical standpoint, and will only be invalidated when price breaks below the bottom of the morning star signal itself at 6440. If any candle closes below here, it's a great level to look for short opportunities to the horizontal support zone .

- Price is currently supporting on the 20 and 50 moving average on this particular time frame. This also suggests bullish intermediate term. If price breaks below the averages, then this is a bearish sign. If price breaks the moving averages, it also breaks the moving averages at the same time, which would be a SIGNIFICANT technical sign of bearishness.

- Side-wards resistance is at 6780 and looks pretty strong. A breakout above this WITHOUT breaking the 2 above rules would therefore be a bullish scenario.

- Below 6640 would negate ALL bullish signals, and below here is a great level to short in towards the horizontal support zone .

Overall take from this analysis: Follows the first 2 conditions, then can go LONG. If third condition comes into play, SHORT below 6640.

Where do YOU think price is headed? Leave a comment below with a chart and let's share our thoughts!

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Comment: Short from 6440, not 6640! sorry for that typing error. :-)
I think market will take stops below 5800 before moving high... So watch action on Sunday and Monday.... I expect downside moved to take stops of traders that is now above 6 months... So alot alot of stops..
+1 Reply
TomProTrader Jollymolly
@Jollymolly, let’s see how it goes :-)

Ty for sharing :-)
+2 Reply
@gumbler, thank you for sharing.
TomProTrader monguilhot
@monguilhot, thanks for sharing.
We are close to a major fake/breakout. We can flash down then up (or vice versa).

I say, enjoy your weekend and stay away from this market until it shows its hand. Then sift through the deck for your 'A' Game. You'll need it to play soon enough.


P.S. "Below 6640 *Short" sounds better ... to me :)
@dralerte, below 6440 “short” *
The rally's just get weaker and weaker. Overall longer term It looks like 6100 could finally be broken and oh my goodness.
+3 Reply
low then uppppp all the wayyyyyyyy
+2 Reply
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