Bitcoin is moving down just as expected in my previous analysis (See related ideas for more information on this analysis). Price is moving perfectly in line with all of my previous Bitcoin analysis! Now we've perfectly gaged the down move, I have zoomed into the 1 hour chart to show the levels of where Bitcoin is trapped between, to give us a successful buy for being so patient!
Swiftly moving on to the analysis, Bitcoin on the hourly chart has clearly broken a side-wards support line at 6145 and is comfortably trading downwards towards a downside target of 5480. Bitcoin is in a strong short term 3 wave flag pattern as the bears continue to put huge pressure on the market, pushing weak hands out of the market.
As more and more weak hands are shoved out of the market, weak hands are cashing in their Bitcoin, and converting to fiat, giving whales more ammunition to manipulate the marketplace! It's something nobody can control, but with patience, discipline and waiting for the right levels to buy, anyone can easily profit significantly from trading Cryptocurrency.
Bear in mind, price could test the side-wards support line as a new resistance before going to the downside target of 5480.
Also bear in mind that the SUPPORT ZONE outlined on my chart is the minimum conventional measure move target for a conventional flag pattern. This doesn't mean it will necessarily stop at this level, nor is it any guarantee that it will go any lower, it is merely the level it's expected to stop as per measure move rules.
The idea will continue to be updated if this idea receives sufficient attention.
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Comment
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Price is moving perfectly in line with the above analysis. As quoted from above analysis:
"Bear in mind, price could test the side-wards support line as a new resistance before going to the downside target of 5480."
It looks like this exact retest is taking place and we are likely going higher for the successful retest before the drop down!
Bear in mind, just because price could retest the support as a new resistance, it doesn't necessarily mean it has to, it could stall prematurely.
Also remember that on July 16th last year BTC was 1920 $ and went up to 20k with China banning exchanges. Don't hang yourself yet 5000k is the buy zone a lot of people are waiting for, and ETF's are on the way soon.
TomProTrader
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@pedro17, Yep, upside is possible. We need a good level before any launch to the upside either way, though.
Fovillain
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@pedro17, which kind of casts doubt on the good news = good price hypothesis.
snoop_robin
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On what basis did you draw the support line on the 5.4k range? How did you come to draw it there?
According to what indicators?
Thanks for elaborating
alexmoreno687
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Hi Tom,
Are you still thinking price will drop to the support zone outlined on your chart?