MMBTtrader

Support zone instead of simple support (Bitcoin fake breakouts)

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BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Sometimes just a simple line is not working and this is the time that zone gets its meaning.

so instead of using so many lines, we can use <<Rectangle feature of trading view>> and create some support and resistance zones instead of simple support and resistance .

here take look at the Bitcoin example in previous weeks:
But let's take look at the 30K support zone instead of the 30K support:

and let's take look at Forex and the same scenario:
here take look at the USDCAD example in the previous month:
But let's take look at the 1.2060 support zone instead of the 1.2060 support:

<<👍hope you enjoy👍 >>
Comment: Notice: As we talked about it in the previous analysis too, fake breakouts are strong reversal patterns like now that bitcoin is still pumping.
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Comments

Volume looks terrible in comparison to May 19th and June 22nd. On June 26th we hit seller exhaustion after volume spike before whereas now it seems like there's a lot of downside left to go... No reason to call the bottom when we didn't get volume confirmation in my opinion. Usually you get a large volume spike to the up- or downside that confirms the direction.
+2 Reply
ckbears90 metaloph1l
@metaloph1l, 100% disagreed what charts are you reading? The buyer volume is swallowing up the seller volume. Thus the price action. It tried to break past 29.5k how many times? There are plenty of reasons to call that the end of the correction. I think the important thing is to remember there was no true top pattern. Not to mention, the 2 month downtrend REEKED of bear trap.
+1 Reply
metaloph1l ckbears90
@ckbears90, I completely disagree with you. Much too early to call the bottom. Volume is still low, much worse than the previous times when we tagged that same level. There was no follow through on the recovery. All we got is a bounce to 50% fib retracement level and price is already struggling again. Additionally, the last few times we hit that low level, we only tagged it briefly. This time price stayed there for nearly two days. Smells like buyer exhaustion to me. The trend line now acts a strong resistance. If we reverse from here I don't think 29,5k will hold. And if it breaks, it'll drop to 26k and potentially even 23,5k really fast. Much too risky to warrant a buy here.
+1 Reply
ckbears90 metaloph1l
@metaloph1l, Low volume in a weak downtrend helps my argument. I agree with you on the lack of follow through but it's yet to be determined. The price stayed at what 29.5k? No it did not. I see increasing buyer volume, albeit it's not that high, so I will say you could be right about a downswing. But I see other people calling for 17.5k, 5k.... I dunno where people get these ideas there's clearly seller exhaustion too no?
+1 Reply
metaloph1l ckbears90
@ckbears90, You're right. I agree that the downtrend volume is weak, but that is to be expected at the end of such a large triangle. At this point, there's just some scalpers left that trade within the triangle. Most traders are waiting on the way it plays out and once the breakout occurs, everyone will pile in and we'll get a large momentum candle. People talking about 5k already are delusional. Even 20k is much too early to call. If it breaks to the downside I expect major support between 23.5-26k. Upside target's I haven't looked yet.

Personally, I wouldn't sell/short at this point. Risk-reward is way off, especially in the long term. So that could suggest the bottom is in because usually I'm more on the bearish side. I just think it's premature to call it because I've learned that the market usually trades higher/lower than I anticipate.
+1 Reply
ckbears90 metaloph1l
@metaloph1l, Agreed with all the technical analysis. It is premature. I'll say reading between the lines I see all these banks giving stark warnings while at the same time jumping in... makes me feel like they're trying to keep it cheap for the time being while they take the little guys' coins.
Reply
Fake breakouts are whales opportunities!
+2 Reply
MMBTtrader CryptoAlkaline
@CryptoAlkaline,

I have the same idea that these fake breakouts sometimes are needed to created fear or showing the false path and after that boom ...
+3 Reply
BotSpot MMBTtrader
@MMBTtrader, you a parrot fish?
+1 Reply
when you refer "breakout" you mean "fake breakdown or breakout downside"*?
+1 Reply