4hr
Hello friends and strangers alike.
Lets Recap:
1) plunged to new lows
2) tested an important final support level
3) broke channel and bounced up to our 50 EMA, and yellow wedge resistance
4) crashed down finding little support
5) formed a support to our channel
6) assumed the slop of our recent high points (top green line, mirrored to the bottom)
7) forged a triangle of indecision
Ps. I love triangles and channels.. only if BTC could stay in a predictable channel forever. Its hard to say how things will break out, but channels are great because people are generally indecisive in nature. Just bet on people not knowing what to do : )
The triangle that we are forming acts as compression; it will shoot one way or the other. Bounce up, continue in our channel or bounce down and further the deterioration of BTC.
A breakthrough up would mean we stay within our green trend lines to continue indecisiveness. Although, If this occurs I will be taking my profits at the intersection of yellow wedge resistance, 50 EMA and historic dotted trend line. Also, I've noticed that when BTC is in a bear market it likes to bounce twice and then do a half bounce attempt and fail halfway through its bounce. You can look at any rally attempts, on a daily chart, over this last month and see exactly what I mean. This would also align with my take profit at about 7100, or wherever the EMA and Yellow Resistance happen to be when we break.
A bounce down would would take us to 6430 areas which would create a double bottom, typically a good time to buy for a bull, but in this case it would probably not materialize and long term opportunity. A bounce down would create more panic and fear in this market; likely to retrace back to the green line to confirm it as resistance, before falling lower.
The breakout from this triangle should produce about 330 points in either direction.
Your favorite part Stoch RSI:
Daily (33), 8hr (7), 4hr (33) are oversold or have just come from oversold territory and are working their way back up. This gives some gas to a bullish breakout and I wouldn't mind being a little bullish up until our daily Stoch RSI is in the overbought area, and we stay within appropriate trend lines. The height of the Daily RSI could actually line up with the top of our green channel possibly hitting 7700. But that's for another update depending on how things develop.
1, 2, 3 hrs are all overbought and could produce more short term price suppression, but being in a tight triangle formation it nullifies their importance unless your trading the channel.
If you are trading the channel like I have been then I suggest thinning your positions before breakout.
Bite sized pieces....Not financial advise
Hello friends and strangers alike.
Lets Recap:
1) plunged to new lows
2) tested an important final support level
3) broke channel and bounced up to our 50 EMA, and yellow wedge resistance
4) crashed down finding little support
5) formed a support to our channel
6) assumed the slop of our recent high points (top green line, mirrored to the bottom)
7) forged a triangle of indecision
Ps. I love triangles and channels.. only if BTC could stay in a predictable channel forever. Its hard to say how things will break out, but channels are great because people are generally indecisive in nature. Just bet on people not knowing what to do : )
The triangle that we are forming acts as compression; it will shoot one way or the other. Bounce up, continue in our channel or bounce down and further the deterioration of BTC.
A breakthrough up would mean we stay within our green trend lines to continue indecisiveness. Although, If this occurs I will be taking my profits at the intersection of yellow wedge resistance, 50 EMA and historic dotted trend line. Also, I've noticed that when BTC is in a bear market it likes to bounce twice and then do a half bounce attempt and fail halfway through its bounce. You can look at any rally attempts, on a daily chart, over this last month and see exactly what I mean. This would also align with my take profit at about 7100, or wherever the EMA and Yellow Resistance happen to be when we break.
A bounce down would would take us to 6430 areas which would create a double bottom, typically a good time to buy for a bull, but in this case it would probably not materialize and long term opportunity. A bounce down would create more panic and fear in this market; likely to retrace back to the green line to confirm it as resistance, before falling lower.
The breakout from this triangle should produce about 330 points in either direction.
Your favorite part Stoch RSI:
Daily (33), 8hr (7), 4hr (33) are oversold or have just come from oversold territory and are working their way back up. This gives some gas to a bullish breakout and I wouldn't mind being a little bullish up until our daily Stoch RSI is in the overbought area, and we stay within appropriate trend lines. The height of the Daily RSI could actually line up with the top of our green channel possibly hitting 7700. But that's for another update depending on how things develop.
1, 2, 3 hrs are all overbought and could produce more short term price suppression, but being in a tight triangle formation it nullifies their importance unless your trading the channel.
If you are trading the channel like I have been then I suggest thinning your positions before breakout.
Bite sized pieces....Not financial advise
