BITCOIN - The Triangle Breakout Could Show Short-Term Direction
Hey! Another update from me, hopefully, You enjoy it and after You "Like" it!
After the rally in Bitfinex, the price is on the ranging mode and it waiting for the direction.
Currently, it has formed a Triangle, three times rejected from triangle upper line and three times rejected from the triangle bottom line. This was the symmetrical triangle but if we don't count those bottom wicks then we get a bearish pattern called "Descending Triangle".
It will show that the price makes lower highs but the support line stays the same but as all the triangles they can make breakout either direction, this descending means that the price could make a breakout downwards with the higher percentage!
To talk about nearest resistance areas - confirmation areas, then above as is still the major strong resistance line at $6,767 and now it is even stronger because of the triangle. The triangle upper trendline and the strong resistance makes a crossing area and if we could see at least 4h candle close above the mentioned level then it would be a bullish confirmation to make a move upwards to the $6,900-$7,000. If You see a candle close above the crossing area around $6,780- $6,800 then definitely look up what the altcoins do, if they are also 'green' then they support that move and we could expect that probably this is not a fakeout.
Plus we have the EMA's confirmation - if we see an aforementioned move then the 100 & 200 EMA golden cross (bullish crossover) is supporting that move.
Bullish summary:
1. At least the 4h candle has to close above the strong resistance at $6,767
2. It has to close above the triangle trendline
3. You must watch what the altcoins do! Do they are in the daily profits to support the current movement?
4. EMA's have to show us nice and clean crossover.
If the price starts to make a breakout downwards, then as You remember, we have a bearish pattern "Descending Triangle" to support current move downwards. Currently, the red curve support has held us pretty nicely from the bearish move, four times rejected upwards from curve support. So, as we have strong resistance above the current price, we have also strong support below the current price. If You see a candle close below the red line and downwards outside the triangle then it would be the first bearish confirmation moment. We have several mediocre trendlines (gray lines) which could support the price but we need a pretty good power to break downwards so I expect a little bit bigger throwback if the breakout downwards has occurred and the target would be around $6,500-$6,550. In this area we have the major down trendline since March 5. and the round number which both works as support levels, plus from some point EMA's start to play as support levels.
Bearish summary:
1. At least a 4h candle close below the red curve support
2. At least a 4h candle close below the triangle (both, descending and symmetrical)
3. Watch, how the mediocre trendlines work, we can not forget them because they make a crossing area around $6,650. If You see a nice candlestick pattern formed from there then probably it would be a good sign because they actually play important role in the bearish price action scenario, but only then when You see a bullish candlestick pattern in the mentioned area. (Hammer, Engulfing, Tweezer bottom, Railroad tracks, Morning Star)
4. And the major area where You have to watch current price action is around the major down trendline and around the round number $6,500. If the price reaches there then I try to keep You posted!!
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After the rally in Bitfinex, the price is on the ranging mode and it waiting for the direction.
Currently, it has formed a Triangle, three times rejected from triangle upper line and three times rejected from the triangle bottom line. This was the symmetrical triangle but if we don't count those bottom wicks then we get a bearish pattern called "Descending Triangle".
To talk about nearest resistance areas - confirmation areas, then above as is still the major strong resistance line at $6,767 and now it is even stronger because of the triangle. The triangle upper trendline and the strong resistance makes a crossing area and if we could see at least 4h candle close above the mentioned level then it would be a bullish confirmation to make a move upwards to the $6,900-$7,000. If You see a candle close above the crossing area around $6,780- $6,800 then definitely look up what the altcoins do, if they are also 'green' then they support that move and we could expect that probably this is not a fakeout.
Plus we have the EMA's confirmation - if we see an aforementioned move then the 100 & 200 EMA golden cross (bullish crossover) is supporting that move.
Bullish summary:
1. At least the 4h candle has to close above the strong resistance at $6,767
2. It has to close above the triangle trendline
3. You must watch what the altcoins do! Do they are in the daily profits to support the current movement?
4. EMA's have to show us nice and clean crossover.
If the price starts to make a breakout downwards, then as You remember, we have a bearish pattern "Descending Triangle" to support current move downwards. Currently, the red curve support has held us pretty nicely from the bearish move, four times rejected upwards from curve support. So, as we have strong resistance above the current price, we have also strong support below the current price. If You see a candle close below the red line and downwards outside the triangle then it would be the first bearish confirmation moment. We have several mediocre trendlines (gray lines) which could support the price but we need a pretty good power to break downwards so I expect a little bit bigger throwback if the breakout downwards has occurred and the target would be around $6,500-$6,550. In this area we have the major down trendline since March 5. and the round number which both works as support levels, plus from some point EMA's start to play as support levels.
Bearish summary:
1. At least a 4h candle close below the red curve support
2. At least a 4h candle close below the triangle (both, descending and symmetrical)
3. Watch, how the mediocre trendlines work, we can not forget them because they make a crossing area around $6,650. If You see a nice candlestick pattern formed from there then probably it would be a good sign because they actually play important role in the bearish price action scenario, but only then when You see a bullish candlestick pattern in the mentioned area. (Hammer, Engulfing, Tweezer bottom, Railroad tracks, Morning Star)
4. And the major area where You have to watch current price action is around the major down trendline and around the round number $6,500. If the price reaches there then I try to keep You posted!!
If You appreciate my work then hit the LIKE button!
I need Your support and thank You for that!
Also, leave a comment with Your thoughts and feedback!
If You want to see the altcoins reviews, then visit "CryptoComes" profile in the TradingView and do not hesitate to follow it!
Have a wonderful day!
Comment:
The bounce on the one hour time frame happened and exactly from the mentioned box, but but, the altcoins doesn’t show any significant signs to grow so, I think we probably go and retest the $6500 level.
The bounce came from the major down trendline which works as a support and if the 4h candle stays like this then it would be a sign, because of the bullish Hammer has formed. Currently, nothing confirmed until we don’t have 4h candle close!
All the best!
All the best!
Comment:
NEW WEEKLY FORECAST!
We got a 4h candle close below the red line (curve support) and we got a movement downwards, hopefully, You were on the chart when this occurred because I had pretty clear criteria.
Currently, the price has stopped and bounced from EMA's at $6,560 but I think we might go more downwards to the red box at $6,500-$6,530, there is the possible short-term bounce opportunity, maybe just a little bit lower but we don't want to see a candle close below the strong support at $6,460.
Short-term bounce criteria:
1. The major down trendline starts to work as a support
2. The round number starts to work as a support
3. The Fibonacci perfect 'pocket' 62%-65%
4. Plus if we see a bounce, then we have still slight EMA golden cross to support this movement!
So watch the price action on the mentioned box and I try to keep You posted!
If You appreciate this, then please leave a LIKE!
Thank You and have a nice day!