Chart Pattern Analysis Of Bitcoin

In this week or this month,
ETH And NVDA are the stars of the market.
I think the crypto market and AI stocks will still do better in the next season of the year.

But before the next bull run,
I am still cautious about the potential pull back of the month scale Wave(C) in the crypto market.

From K1 to K3,
It is a bearish three soldiers advancing pattern,
A short-term downtrend Or A large scale consolidation had started from K1.
The risk is increasing.
I will try to decrease my long positions if there are more bad signals from the following candles.

Comment:

K1 and K2 are two bullish spring candles,
The supply pressure is decreasing.
It seems that the short-term bearish momentum had been interrupted here.
But, it still needs more signals to verify it.

If K3 is another spring with low volume,
Perhaps the following candles will climb up to test the resistance for a second time.

Trade closed: stop reached

Comment:

K3 close upon K2,
It verified the potential bullish hammer candle of K2 and K1.

If K4 still stay upon the neck line,
It will be likely that the following candles break up the resistance.

Comment:

K3 and K4 verified that both the supply and demand pressure are decreasing.

If the following candles close upon the resistance,
it will be valuable to buy it there.
The bull market will keep climbing up to test 74K area.

If the following candles close below the support,
A bearish wedge will be established here.
The risk will sharply increase.

Comment:

K2 failed to close upon K1 under sharply increased volume,
It is a bad signal.
The supply pressure is too high here.

If the following candles close upon K1,
It will be a good place to buy it here.

And, the time is closing to the end the month,
Price shocking will usually happen here.

Comment:

K2 is a bearish engulfing pattern under increasing volume,
It seems that a short-term downtrend had started earlier and will accelerate.
If the following candles retest the resistance under low volume,
It will be a potential good place to short it there.

I don’t think the potential short-term downtrend will go far.
It is still a bullish market in the long term.
Keep at least half of long positions in the market is reasonable.

Short-69200/Stop-70200/Target-63500

Comment:

K3 tested the uptrend line under increased volume,
It seems that the supply pressure is still at high level.
The market will choose a direction to price up or break down here.
It is more likely that the following candles break down to test 62K area.

But I don’t think it is profitable to short it.
The market is boring temporarily.
At least hold half of long positions in the market.

If the following candles close upon the downtrend line,
The short-term consolidation will be terminated here.