Good Morning All and Happy Wednesday!
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Let me be the first to admit how wrong I was in thinking that the 21W would hold support! I truly believed, based on what I was looking at with the charts, that we would have held support at $9,300. With that being said, I admit defeat and will live to fight another day. This is why stop loss and risk management is so important!
Reevaluating the 1D chart and using the two points marked with white circles on the candles, the price has stopped at the 0.886 retrace. This is a prior accumulation zone and just under the 200 EMA and 0.786 at $8,800. Now, relatively speaking we did not see high volume come in on this break, however looking back at a previous triangle in BTC's past - the one that dropped from 6K to 3K - the real volume came on the move after bearish consolidation post pattern break. I have marked a white line over the volume bars to to show this level, and when it is broken, a new consolidation period begins. Something of course we must consider is the measured move off the triangle as these patterns tend to play out completely over longer time scales. The last one moved down 48% to its height, and the projected target of this triangle is also 48% down to as low at $4,900! From break to bottom of the last triangle was 36 days, the same situation here would give us a bottom nearing November. Of course a false breakout of this triangle is still possible until the end of the week however it does not seem likely. The RSI on the 1D chart still has room to move down although in oversold territory with the MACD still having plenty of space as well.
Leave a Like and Comment!
I Hope Everyone is Doing Well!
Let me be the first to admit how wrong I was in thinking that the 21W would hold support! I truly believed, based on what I was looking at with the charts, that we would have held support at $9,300. With that being said, I admit defeat and will live to fight another day. This is why stop loss and risk management is so important!
Reevaluating the 1D chart and using the two points marked with white circles on the candles, the price has stopped at the 0.886 retrace. This is a prior accumulation zone and just under the 200 EMA and 0.786 at $8,800. Now, relatively speaking we did not see high volume come in on this break, however looking back at a previous triangle in BTC's past - the one that dropped from 6K to 3K - the real volume came on the move after bearish consolidation post pattern break. I have marked a white line over the volume bars to to show this level, and when it is broken, a new consolidation period begins. Something of course we must consider is the measured move off the triangle as these patterns tend to play out completely over longer time scales. The last one moved down 48% to its height, and the projected target of this triangle is also 48% down to as low at $4,900! From break to bottom of the last triangle was 36 days, the same situation here would give us a bottom nearing November. Of course a false breakout of this triangle is still possible until the end of the week however it does not seem likely. The RSI on the 1D chart still has room to move down although in oversold territory with the MACD still having plenty of space as well.
Comment:
1H chart showing divergence?
1H chart showing divergence?
Comment:
4H oversold RSI with MACD re-setting negative momentum for possible shift or continuation.
4H oversold RSI with MACD re-setting negative momentum for possible shift or continuation.
Comment:
A false breakout target could reach upwards of $14,700!
A false breakout target could reach upwards of $14,700!
Comment:
21W
EMA marked here.
21W
EMA marked here.
Comment:
Triangle broke up! Back tested and currently on support.
Triangle broke up! Back tested and currently on support.
Comment:
BTC rounding out ?
BTC rounding out ?
15 minute chart looking weak. Flat support with down sloping resistance.