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Bitcoin' has found a short-term support after the massive drop. The support is well-known $5,525 from 2017 Oct.-Nov. On the picture below it has held us multiple times on the daily chart and so as now.
2017 October- November:
This week:
As You see, this week we have touched this level two times, two times we got the rejection and the candle closes have been above the strong support level. So, we could assume that one candle close below that level and we could have a confirmed move downwards to the $5k.
Yesterday's candle gave us a candlestick pattern or even two. Because this could be a Dragonfly Doji or the Hammer This could be an indication that we have found a short-term support level. We have two confirmations:
1. We have two rejections from the super strong support level
2. We have a bullish candlestick pattern
Let's search more confirmation to get a better overview of the market. We need to dig into the lower timeframes to get more confirmations to either direction. When we get out of the market and when we can be safely on the market.
I left several higher timeframes to the side and jumped straight into the 1H timeframe.
On the image above You can see that this blue super strong support level has played a pretty important role in the last two days. It has been straight on the line and the quick moves up and below it and still, the price is around that support. Like You see then those moves have started to make a pattern - Inverted Head & Shoulders. Yeah, it would be nice when we got confirmed pattern (right shoulder should bounce upwards from $5,400 and then break above the neckline) from this level because then we get our third bullish sign:
3. Bullish chart pattern "Inverted Head and Shoulders"
This is little jumpy today but let's jump into the 4H chart:
The picture above You can see that we have started the consolidation around strong support area but we are still on the edge to make another leg down to the major support area to the $4,929. A small sign is the last 4H candle close below the $5,525 but luckily we have a right shoulder support at $5,400 which should hold the price. The bearish confirmation should come from below the $5,400 - at least a 4H candle close below this area will guide us to the lower levels.
If we want to search bullish confirmation area than it would be around the previous 2018 low level but definitely above the orange trendline which is pulled from 6 Feb.
The road upwards is not easy at all. Firstly because of the low volume, low buyers interest to buy and etc. Plus we have several strong resistance levels which make the climb upwards heavier.
SUMMARY: The key level is $5,525. Another daily candle above this level and we will be more certain that this level holds us and we may start slowly going upwards but a daily candle close below this level could mean actually disaster because the major support is the $4,929 but don't know if this holds us. Dream scenario: If the price makes that fast move to the major support level and the daily candle close is above both levels ($4,929 & $5,525) then BUY whatever You can because then we get bullish Hammer from super important levels and 90% we will go upwards.
Hopefully, this breakdown helps You out a little bit to confirm Your own analysis!
Please, don't forget to LIKE, COMMENT & FOLLOW!
Thank You for your support, I really really appreciate it!
Have a nice day!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Bitcoin' has found a short-term support after the massive drop. The support is well-known $5,525 from 2017 Oct.-Nov. On the picture below it has held us multiple times on the daily chart and so as now.
2017 October- November:
Yesterday's candle gave us a candlestick pattern or even two. Because this could be a Dragonfly Doji or the Hammer This could be an indication that we have found a short-term support level. We have two confirmations:
1. We have two rejections from the super strong support level
2. We have a bullish candlestick pattern
Let's search more confirmation to get a better overview of the market. We need to dig into the lower timeframes to get more confirmations to either direction. When we get out of the market and when we can be safely on the market.
I left several higher timeframes to the side and jumped straight into the 1H timeframe.
3. Bullish chart pattern "Inverted Head and Shoulders"
This is little jumpy today but let's jump into the 4H chart:
If we want to search bullish confirmation area than it would be around the previous 2018 low level but definitely above the orange trendline which is pulled from 6 Feb.
SUMMARY: The key level is $5,525. Another daily candle above this level and we will be more certain that this level holds us and we may start slowly going upwards but a daily candle close below this level could mean actually disaster because the major support is the $4,929 but don't know if this holds us. Dream scenario: If the price makes that fast move to the major support level and the daily candle close is above both levels ($4,929 & $5,525) then BUY whatever You can because then we get bullish Hammer from super important levels and 90% we will go upwards.
Hopefully, this breakdown helps You out a little bit to confirm Your own analysis!
Please, don't forget to LIKE, COMMENT & FOLLOW!
Thank You for your support, I really really appreciate it!
Have a nice day!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Comment:
Hey-hey!
Currently pretty quiet but still some price levels what You have to watch when You want to understand about short-term direction!
At the moment the price is nicely above the important support level $5,525 and the price has drawn a sloppy triangle (it includes bear trap as a fake out). We can use this triangle as a nice indication for further movement!
Bearish:
IF we get a candle close below the super strong support and below the triangle (red triangle is the confirmation area) then we get a movement down to the head and shoulder support around $5,400. There has to form a right shoulder and the bounce from there would be perfect BUT if we don’t get a bounce around mentioned level then a candle close below $5,400 will be the start of next leg to the major support level!
Bullish:
IF there would be a candle close above the triangle and above the blue line (which is higher high close since drop) then it would a firts smaller sign upwards second comes from after close above orange trendline!
Currently I don’t recommend any scenario. Wait those confirmation areas and watch from there! Still, I would like to say that I like current price action but I wait also those confirmations!
As always, if You appreciate my work then support this TA. by hitting the LIKE button.
All the best to You and have a wonderful weekend!!
Currently pretty quiet but still some price levels what You have to watch when You want to understand about short-term direction!
At the moment the price is nicely above the important support level $5,525 and the price has drawn a sloppy triangle (it includes bear trap as a fake out). We can use this triangle as a nice indication for further movement!
Bearish:
IF we get a candle close below the super strong support and below the triangle (red triangle is the confirmation area) then we get a movement down to the head and shoulder support around $5,400. There has to form a right shoulder and the bounce from there would be perfect BUT if we don’t get a bounce around mentioned level then a candle close below $5,400 will be the start of next leg to the major support level!
Bullish:
IF there would be a candle close above the triangle and above the blue line (which is higher high close since drop) then it would a firts smaller sign upwards second comes from after close above orange trendline!
Currently I don’t recommend any scenario. Wait those confirmation areas and watch from there! Still, I would like to say that I like current price action but I wait also those confirmations!
As always, if You appreciate my work then support this TA. by hitting the LIKE button.
All the best to You and have a wonderful weekend!!
Comment:
Also leave a comment about your thoughts and give a feedback!
Cheers!! ;)
Cheers!! ;)
Comment:
The leg down has started and currently, we are below the gray support line. The gray line marks the current strong support area. The price has got the rejection 6 times - Line locates at $5,374. At the moment, the price trades below it and we already have the lowest 4H candle close which will indicate that we might go and test the green box on the chart. From the green box we should find a good short-term support.
The only bullish scenario before green box is that when the current 4H candle gets a push above the gray line $5,374. Otherwise, we have a break below the support and we go to the green box. If the price reaches into the green box area then You can watch some altcoins to make short-term profits with them!
The only bullish scenario before green box is that when the current 4H candle gets a push above the gray line $5,374. Otherwise, we have a break below the support and we go to the green box. If the price reaches into the green box area then You can watch some altcoins to make short-term profits with them!
Comment:
Interesting price action on the 15 min chart.
Double bottom formation and those green candles are full of bullish volume!
Double bottom formation and those green candles are full of bullish volume!
Comment:
Hopefully, you enjoyed my TA. and LIKE is the confirmation to me ;)
All the best!