BITCOIN | Some Important Levels & Scenarios To Watch
Yesterday, the BTC price made a pretty decent climb and it manages to break above the pretty strong resistance level. The level which stayed around 10k was a pretty nice reversal area but we neede a bearish candlestick pattern around it. Luckily (knowing the price action after it), we didn't get it and the price made a pretty impressive 4H candle break above the short-term counter-trendline and above the EMA200
As you already know, those counter-trendline breaks are pretty powerful and now, the Bitcoin price trades around $10,500.
There are some opportunities to jump into the wave but they are really difficult trades, considering risk/reward ratios and etc.
So, I just want to point out some areas and possible scenarios if the price starts to approach those.
Green arrow:
This scenario might get confirmed after the candle close above the gray area, known as a strong resistance. After the close, the price can easily go to the strongest horizontal price level. It stays around $11,000. I have mentioned this area multiple times and even one short opportunity was successful around it.
There is the mid-term counter-trendline which starts to act as a strong resistance level and there is also a Fibonacci level 62%, plus the prementioned strong horizontal level $11,000. These three together should play an important role in further movements. A break above of it will trigger the price into the mid-term uptrend...12k+. Definitely, at the moment can't call a short from there but let's see, all depends on the price action.
Black arrow:
This area stays active until the price hasn't made a break above the gray resistance area. After the yesterday's breakout above the 10k and above the short-term counter-trendline with a strong 4H candle proved that this area was strong. How this was a strong level if it made a break above of it? Because there were technically strong criteria and the major reason was a strong 4H candle break. If we wanna see a break then we wanna see it with the strong candle, not tiny ones. It means, this level still might work as support now and I'll watch it really closely if the price starts to approach it.
Red arrow:
Just in case. After yesterday's, break above the counter trendline I cannot see that the price can reach back to the lower levels in the near days BUT this is a crypto market and just in case it is there.
First bearish signe comes after the 4H candle closes below the higher blue trendline and the biggest mid-term bearish confirmation comes after the candle close below the lower blue trendline!
I'll try to keep you posted.
Good luck,
Vaido
As you already know, those counter-trendline breaks are pretty powerful and now, the Bitcoin price trades around $10,500.
There are some opportunities to jump into the wave but they are really difficult trades, considering risk/reward ratios and etc.
So, I just want to point out some areas and possible scenarios if the price starts to approach those.
Green arrow:
This scenario might get confirmed after the candle close above the gray area, known as a strong resistance. After the close, the price can easily go to the strongest horizontal price level. It stays around $11,000. I have mentioned this area multiple times and even one short opportunity was successful around it.
There is the mid-term counter-trendline which starts to act as a strong resistance level and there is also a Fibonacci level 62%, plus the prementioned strong horizontal level $11,000. These three together should play an important role in further movements. A break above of it will trigger the price into the mid-term uptrend...12k+. Definitely, at the moment can't call a short from there but let's see, all depends on the price action.
Black arrow:
This area stays active until the price hasn't made a break above the gray resistance area. After the yesterday's breakout above the 10k and above the short-term counter-trendline with a strong 4H candle proved that this area was strong. How this was a strong level if it made a break above of it? Because there were technically strong criteria and the major reason was a strong 4H candle break. If we wanna see a break then we wanna see it with the strong candle, not tiny ones. It means, this level still might work as support now and I'll watch it really closely if the price starts to approach it.
Red arrow:
Just in case. After yesterday's, break above the counter trendline I cannot see that the price can reach back to the lower levels in the near days BUT this is a crypto market and just in case it is there.
First bearish signe comes after the 4H candle closes below the higher blue trendline and the biggest mid-term bearish confirmation comes after the candle close below the lower blue trendline!
I'll try to keep you posted.
Good luck,
Vaido
The price are heading to the target area around $11,000, which can be a selling area.
At the time when I made this post, the price action was a bit unclear. At the moment the target area can be also a reversal area BUT I'll try to make a new post about that.
Regards!