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BitCapJNY
Feb 5, 2021 2:03 PM

Wait for it..  

Bitcoin / U.S. dollarBitstamp

Description

Price action in this consolidation... Double Busted Symmetrical Triangle? .. Bull Pennant? ... Bull Flag?... Complex Inverse Head and Shoulders?

Whatever, whoever -is responsible for this incredibly sloppy price action (since reaching a new ATH) has NOT made forecasting these movements a very clear task..

Waiting for some significant volume to determine if this is indeed a breakout, or if it will be one last test of this resistance before a significant correction.

HOWEVER -it's really hard to be bearish on the Corn right now.

EVEN THOUGH:

- DXY is still gaining strength and is heading towards the 200 DEMA, near 93.2%.. a 2.6% positive move.
+ Hidden bullish Div on DXY (daily RSI)
- INV correlation between DXY and BTC/USD has been about 15:1 (1% move up for DXY = 15% correction for BTC/USD)
- A handful of indicators are STILL hinting towards BTC being overbought


Confirmations for entry:
- 4hr close above 37.9K
- Positive volume > 21MA (614.59MM)
- 4hr BULLISH confirmation on MACD

RRR for a buy at the breakout price of $37.929 and a T3 $69.474 is about 12.3.. however, if this bullish move is NOT a fakeout, I will let a significant amount of the trade ride the wave of BULLISH MOMENTUM.


Rather bland analysis, but aside from the sloppy price action and lack of volume, I believe this to be fairly straight forward.

What are you all seeing? Do you think bitcoin is headed higher.. or do you think this is a fake out?
Comments
ychangsinata
Hi the last previous high was at $38,620 (although it was a wick) are you not going to wait till the 4H candle close above that price before making entry?
BitCapJNY
@ychangsinata, that price really doesn't carry much significance in my analysis, due to a number of reasons. Mainly, it's a deviation from the overall structure caused by Elon Musk putting "#bitcoin" in his Twitter profile. Makers' tactics of large volume fluctuations produce a very similar result -invalidating classical pattern structure on lower timeframes -liquidating over leveraged positions in the process -but on higher timeframes, price action structure remains intact.

A lot of whales hoping to accumulate before the price really takes off. This zig zag/saw tooth PA has the stench of sophistication

Thanks for the comment!
ychangsinata
Thanks for the reply, the 4HR candle just closed it ticked off all your confirmation signals except it was negative on MACD, did you open your long entry?
BitCapJNY
@ychangsinata, I did not... found this (6hr)
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