goldbug1

Bitcoin - Levels of Importance - The Beauty of Chart Art

Long
COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Quick update to the Bitcoin chart and what we are looking to do moving forward. Yes it may appear bearish , yes we are in a difficult consolidation, regarding trading, but order flow guides us not the chart art and those that are sucked in by its beauty.

Two days ago, price action was telling that buyers were likely drying up, so we took a trim on our long term inventory to prepare for a pullback, but also to remove risk from the market. This is our second trim, and we are now sitting on a pretty decent cash position ready to position back into the market.

There was no MA, oscillator, or indicator that was telling of the sell, but price action was showing signs of buyer exhaustion on multiple time frames so we decided to trim.

Long term we are still bullish , there is still some room to run here, the market is not over euphoric, many were sitting patiently waiting to get in from lower levels, missed the run and are likely looking to jump in at some point. In short not everyone is long the market, no real signs of being overly euphoric, but there is interest. This is why I lean towards another leg up.

As mentioned in my last article, we were looking for 32k to hold, and right now the testing that level. A close below 32k and the next candle taking out the low of the current, expecting a pullback into the 24-27k area. This is where I am essentially looking for longs, but we may not go that low.

IF we find support here along with a setup to go long, am looking for a swing trade back into the 36-38k area initially, potentially to retest the high. Of course there is no setup yet, the market has not proven itself, so all we can do is wait.

So while many are guessing the next direction, relying on oscillators, indicators and Fibb levels that are meaningless, we are looking for verification of direction, via order flow through price action. Yes boring I know, chart art is so much more convincing. The beautiful colors, the symmetry and patterns, there is nothing more beautiful than chart art, but chart art is not indicative of what is going on in the markets.

In the end, sellers are in control here, but only in the short term. The question is do buyers attempt to take back control, and are enough weak hands bled from the market? Well that we do not know yet, so we will just remain patient and let price action provide some indication.

So it is ok to browse the chart art that is so prevalent from amateurs that think it is as easy as click and go, but do not get sucked in by the beauty.

By the way still buying every day with the Bitcoin challenge.

Comments

good work
my view
+4 Reply
Pretty funny how gold calls out chart art and then there's a ton of chart art in the comments. Hilarious.
+3 Reply
NVT indicator still red which indicates strong network value (demand) on-chain. This indicator has been 100% accurate in forecasting either major continuation patterns or major selloffs. This was a classic double-pattern. Will see longs step in here and take us up in coming days. They tried to FUD and shake longs out here, which they did to some degree as they got leveraged longs out, a condition necessary to take this up MUCH higher.
+2 Reply
Weekly EMA 20 can help
+1 Reply
Hi Goldbug! Brilliant synopsis. Could you point me to some accessible resources to start learning how to use order books as a reference?
+1 Reply
Let's see how it goes, great analysis. Keep it up!

If You could check My Idea, I would appreciate it a lot, as well let me know what do You think!
+1 Reply
this is my current view ... pullback between 0.618 and 0.5. :-)

+1 Reply
Liguistically dazzling as always! I'm on the Bitcoin Challenge with you 🙌🏻🌟
+1 Reply
same idea thanks for sharing
+1 Reply
@goldbug1 Great! Your analysis as always clear and precise Thank you very much for sharing it. And keep doing it that way! Congratulations, lol!
+1 Reply
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