Chart Pattern Analysis Of Bitcoin

K3 break down and close below K1,
It is a strong bearish pattern,
And it verified the previous bearish pattern K0.
From K0 to K3,
The supply pressure is also increasing.

A potential large scale double top pattern is on the way.
Will K4 price up to provide an opportunity to let me get out of the market ?
I don’t know.
So, I cut off half of my long positions immediately after K3 break down the neck line.
It is a big loss for me, I have to accept it.

A nearest support at 59K.
I will try to buy back there,
Or, if K4 close upon K3 immediately, I will also try to buy back.

Comment:

If K3 keep dropping to break 60K and test the support,
It is a potential good place to buy in.
A rebound after an overselling wave will likely happen there.

But for now,
The demand pressure is too low temporarily,
It is not enough to interrupt the strong bearish momentum.

Comment:

K1 and K2 is a bullish upthrust pattern,
The strong bearish momentum was temporarily stopped here.
If the following candles consolidate here for days,
And the demand pressure sharply decreased,
It will be a good place to short it at 0.382-0.5fib area.

I cut off another half of long positions at K2.
If the following candles touch the higher price area of K1,
I will try to buy back.

Comment:

K3 verified the supply pressure at 0.5-0.618fib area keeps at high level.
The demand pressure also keeps at high level.
If the following candles consolidate here for days,
And the demand pressure sharply decreased,
It will be a good place to short it near the neck line.

Comment:

After K1 close below the neck line under average high volume,
K2 verified that the supply pressure is still too high,
And the resistance of the neck line is effect temporarily.
If K3 close below the candle body of K2 under low volume,
It will be a good place to short it there.

Comment:

It seems to be a declined consolidation process here.

If the following candles price up to test the resistance under low volume,
It still worth to short it there.

If the following candles close upon K2 immediately,
The neck line may lost its power.

Comment:

A bullish upthrust pattern of K1 and K2 verified a potential support.
But it is not strong enough to reverse the short term downtrend.
It must be verified by the following candles.
It seems that the consolidation process is still active.
If the following candles price up to test the upper price of K2 under low volume,
It will be a good place to short it there.


Long-61628/Stop-60803/Target-65000
Short-65620/Stop-66858/Target-53000

Comment:

K2 is a bullish hammer candle,
But, it still failed to close upon K1.
K2 tested the resistance under sharply increased high volume,
The supply pressure is still too high.

If the following candles price up to test the upper price of K2 under low volume,
It will be a good place to short it there.


Short-64688/Stop-65480/Target-53000