Hello traders,

Lets talk about bitcoin and some possible scenarios.

Scenario nr . 1 that this correction is forming a descending triangle (white lines) . When forming such triangles, price tend to break to the down side, but we know that we are in a major uptrend so breakdown shouldn't last long. It might touch fib ration of .5 (26k) before resuming to it's original direction.

The same scenario is possible if the correction is forming a falling wedge (yellow lines), which usually breaks up and resumes to it's original direction. In this case it might also touch fib .5 or even a bit lower.

However, corrections in an uptrend are quite short lived, and it is very probable that the last engulfing candle (if formed) on a daily TF might signal that it won't go any lower (however volumes are too low for a reversal so it might not be a probable scenario). It might range for some time letting altcoins to have so growth, but otherwise it just might be it.

Although we cannot diregard that correction might last for another week or two.

50EMA on a daily also works as a strong support signaling that we might not go any lower.
Recent selling presure is quite weak and we might see a break above the major resistance of the upper line.


I think it is very unlikely that is we break below the support lines of either of two patterns, that we will reach golden fib ratio (around 22k). It would be over 45% correction in an uptrend which is unlikely to happen. Possible, but not probable.

Nevertheless, I wouldn't open any possitions without confirmation of breaking above trend lines mentioned above.

And remember, trade with the money you can afford to lose.
The money you trade with should be the money that you are comfortable with never seeing again. Never take positions that are too big for your financial comfort level. Even if you 100% sure, that it is going to be a winner (which by the way, doesn’t exist). There is a direct correlation between position size and higher profitability. With proper position size, trader has a sense of detachment from a financial aspect letting him concentrate on objective discipline.

Risk managment is the key to consistency, consistency is the key to success.

Good luck traders
Trade active: As anticipated, we have touched and some might say broke uper resistance line. However we have to acknowledge the fact, that resistance is a price interval not a static point. It is general rule that resistance is regarded as broken, when price remains above resistance for at least two consecutive days.

Otherwise a briefly broken resistence (on a short period of time) can be considered as a bull trap or a short squeeze. Short squeeze means, that short positions which were opened on a resistance is forced to close because price is getting higher. (usually driven by larger buyers.

Let's see if we resume price and try resistence for one more time or continue to range inbetween the patterns.

Comments

Hi. Which one in your personal opinion would happen? Is it possible btc going down under 29000?
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Sharkethics net_pioneer
@net_pioneer, Hi, it is possible to break below 29k. However this level works as a strong support and it might also just touch it again. On the other hand if the price action won't do a higher low and break above 34k (and the upper resistance (range of 34-35k), we can see a ranging market for quite some time. I would strongly advice to wait for a confirmation.

Remember, catching the bottom is extremely hard. It is better to buy high and sell higher than guessing the bottom.
+1 Reply
net_pioneer net_pioneer
@Sharkethics i guess it will touch 34K and then going down to 31 or 29K. Thanks by the way
+1 Reply
Sharkethics net_pioneer
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