The price broke the right shoulder and the reversal chart pattern became a continuation one. The market keeps some potential for moving upward and probably it will be able to reach 6000.00 level without deep correction, but still, we have different signal too. The weekly and the tell us about the possible downward movement which is logical in the structure of the uptrend. Yes, the market can move upward. But for me, the main questions is - the market bounces from the zones at 5000.00 or 6000.00 levels in order to move down to the important support zones. Nothing more.
If we look at the 1H chart, the market continues upward movement in the borders of the upward channel. Now the price is at the formed by the upper line of the channel and 5300.00 . It's the zone where the price can bounce and move downward to the main line of the . At the same time we have to remember that if the price breaks the , the market will confirm the further upward movement. It will show the strength of buyers and their wish to reach 6000.00 resistance as soon as possible.
For confirmation of the downward movement, the price will have to break the main line of the and drop below 5000.00 . In such case, the market will be able to follow the signals from the higher timeframes.
How to trade:
- short term trading can be done based on the reversal signals from the at 5000.00 level and the main line of the
- for the medium term trading, I would like to get a correction to 4200.00 - 4000.00
- for long term trading, it's possible to start building long positions from the current levels.
If you want to see the bigger picture for this market, I advise you to read my previous posts about Bitcoin . You can find them in the related ideas.
I agree with your MTF method for trading, very applicable. I do my analysis on Multiple Time Frames, by using "9 Seasons Rainbow Indicators". In case the price falls to the level 5000, I would ee a 15m - 1H Bullish Divergence, while then price falls to the level of 4000, a 30m-2H Bullish Divergence may serve as reversal signals.
I notice Divergence has been working pretty well on BTCUSD Since Summit of December 2017. I concluded all big Divergence signals of MACD and RSI in my new idea
"Is Divergence the King or Queen of Crypto Technical Analysis?".
What is your view?
There is no such thing, neither should be.
Also expression as " We let the market decide is absolutely wrong"
Pro trader will be able to determinate direction, since he is the one making confirmations.
Thank you for your efforts Mr. Lavorv.