Currently, the price makes a little throwback after yesterday's rally and probably we might get another leg upwards. How far and where the bounce occurs? How far - The first target should be the yesterday's high ($3,585). From where - let's find out...
The current movement downwards has started from the orange area. This area is pulled on the 4H timeframe. It has worked as a super-strong resistance and as a super-strong support. The price is touched it from either direction 17 times and 17 times it has got a rejection from the orange area. Only ONE(!) candle has been so powerful to break this level and this candle is surely the down candle: So, as I said in my earlier post, we need to make a throwback (movement downwards) before we can beat this level at next attempt. So far we playing through the perfect scenario. The price found the resistance from the orange area and it starts to preparing for the next move. The next leg upwards should come between the round number $3,400 and $3,450.
The $3,400-$3,420 level is technically a perfect rejection zone because: 1. The old resistance becomes a support - role reversal 2. Fibonacci retracement level 38% which should act as a support, pulled from the bottom to the yesterday's high. The 38% level is very important for the bounce, because if the trend is full of momentums then this level is the most common bounce level. 3. ABC pullback from the top matching with $3,410-$3,420. NB: You should start to be more cautious when the price slowly falls lower than this level because if we don't see a bounce from there (technically it is a good zone, plus several price action criteria matching each other in one price level - strong area) then the momentum is probably gone and the market fear is still too big!
From the price structure, the price is made new short-term HH which is supporting the attempt to go higher than the orange area, after the little movement downwards. We need every confirmation and every bullish sign because the orange area statistic is so crucial - 17 touches and only 1 breakthrough and this breakthrough is downwards!
SUMMARY: The current throwback has to end around $3,410. From there we get a perfect momentum platform to make another attempt to break the orange area. The statistic doesn't speak to our favor but we might see some FOMO players entering into the market which will make this move more powerful if we start launching from the mentioned level. The bounce area is technically good and strong, multiple price action criteria matching each other in one area. REMEMBER - as I said before, be cautious if the price starts to fall slowly down from $3,410 without any significant movement/bounce/rejection. Probably this could mean slow death!
Please, don't forget to LIKE, COMMENT & FOLLOW! Thank You for your support, I really appreciate it!
CHEERS!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
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If the bounce comes a bit earlier than $3,410 then it would be confirmed after we get a breakout from the bullish continuation pattern Falling Wedge! Cheers and do not forget to LIKE ;)
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On the 15 min. chart we got already the breakout confirmation from the falling wedge and we got a close above the round number resistance $3,500! The volume inside the breakout candle was decent! Remember, this is 15 min. candle - not the best confirmation timeframe but let's see! Altcoins slowly picking up this move...
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After the breakout from the Falling Wedge, the price has almost reached into the target 1 area at $3,585. NOW, we need super volume to break the orange area otherwise, we get just 18. failed attempt on the 4H chart to break the orange area! Continually, hit the like button and leave a comment about your thoughts! Cheers!
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On the 4H chart we got the 18. orange area touch and the price rejected after the touch. Currently, not any significant signs. The price trades around the round number $3,500 and nothing more. We got a bounce after the falling wedge breakout but I still believe that the price almost has to touch the $3,410 to find the momentum and the power from there to break the orange area! The bearish sign around the $3,410 You find on the main post! Do not forget to LIKE! Cheers!
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HELLO! The price did it!! The price did a break above the super-strong resistance area and as I said we need a strong candle and strong volume from buyers. This area is like a river without a bridge and now we are on the "safe" side. Hopefully, the statistic starts to speak for our favor and this starts to work as a super-strong support level from now on. This strong and powerful move above the orange area confirms our mid-term higher high which is another bullish confirmation. Now we need a little throwback, which as started already and hopefully, we find support around $3,650 area. The next resistances are the strong price level on the chart at $3,875 and the round number $4,000! I try to keep You updated and please do not forget to hit the LIKE button. Thank You for your support!
Trade closed: target reached
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The mentioned targets are reached! The next target is $4,000 and looks like we can take it down also!
Hello VaidoVeek, Great work. How sure are you on the bounce upwards versus going downwards from here at 3523.11 at 1123amEST?
VaidoVeek
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@RCFortuna, Hey and thank You! Currently, it is hard to say because we did that move a bit earlier than I expected! The breakout from the falling wedge was the confirmatin but currently, we got rejection from the orange resistance area! The 4h candle close was not so convincing to me so, I think we may go still retest the $3,410. One thing is sure that do not buy from the current price, because the resistance is so close above the price and this resistance is super-strong!!
Cheers!