Well first of all a possible bearish channel is being confirmed
If we realize there was an excellent test at 38.2%, it means that in that area there is a large order block betting upwards, so all is not lost.
If we realize there was an excellent test at 38.2%, it means that in that area there is a large order block betting upwards, so all is not lost.
What is an Order Block? There are several definitions depending on the trader you follow, mine personally is an order block from the last bearish candle.
Block of Orders where institutional or whales or most traders buy en masse. If you do not know Python to get all the orders from all the brokers we apply the old reliable one. Use 50% of the body of the candle.
Here we see 9 bearish lines, The OB is the last bearish candle in theory. So, time to apply it based on graphs.
Here I went a little closer to the 1h graph to be more precise. We see that he places a huge rectangle on the last 1 hour bearish candle, right? This would be our possible Order Block area where institutions seek to enter, mostly 50% of the body of the candle is usually where the majority of orders are found. As we can see after touching it, it shot. Leaving a huge shadow.
Well that is the theory, that institutions always seek to enter at that point, but in reality. My idea is that most only seek to enter at that point because it is too obvious a good entry.
If you want to believe that the institutions enter there, personally I do not consider it, if I mention it only it is for the theory, that I will always respect it but I will not share it exactly, each trader must forge their ideas but that they are consistent with the theory . You're not going to make up a new Elliot Waves Impulse rule.
We Identify Possible Orders Blocks
We can notice a possible ABCD Pattern, which is "confirmed", with the 1000 shorts from the institutional to the entire global economy, not just crypto, everything ..
Although we could also go to test the order blocks and try to break this bearish channel.
As well as we could see an ABCD, bullish. Maybe in an Order Block.
This bullish ABCD, I put it with red letters.
If you ask me, Total?, Here both patterns are being respected, it all depends on the increase or decrease of institutional shorts. Or if the retailers outperform the bears.
Both ABCD patterns are respected and both are possible, depending on what the majority of institutions do or if the retailers outbid.
We identify supports and resistances
The MACD indicator presents bearish divergence, losing upward strength, and initiating a possible downward fall.
The RSI continues to point lower, perhaps to touch areas of 24 RSI
Bitcoin is between the moving averages and the 59,000 resistance of the last two days. This narrow range trade suggests a state of equilibrium between the bulls and the bears.
If the uncertainty is resolved to the downside, it could fall 52,000
The bulls will try to defend this support and, if successful, the pair could extend its consolidation between 52,000 and 59,000 for a few more days.
The exponential moving average EMA20 gradually increasing by 56,500 and the RSI Relative Strength Index near the midpoint suggest a balance between supply and demand.
This balance may shift in favor of the bulls if the price sustains above 58,600. That could result in a march to the all-time high and then a breakout of 65,000. A break above this resistance may indicate the resumption of the bullish movement.
Conversely, a break below 52,500 may signal the start of a deeper correction to 46,000. A break below this support could trigger a panic sell.
If we realize there was an excellent test at 38.2%, it means that in that area there is a large order block betting upwards, so all is not lost.
If we realize there was an excellent test at 38.2%, it means that in that area there is a large order block betting upwards, so all is not lost.
What is an Order Block? There are several definitions depending on the trader you follow, mine personally is an order block from the last bearish candle.
Block of Orders where institutional or whales or most traders buy en masse. If you do not know Python to get all the orders from all the brokers we apply the old reliable one. Use 50% of the body of the candle.
Here we see 9 bearish lines, The OB is the last bearish candle in theory. So, time to apply it based on graphs.
Here I went a little closer to the 1h graph to be more precise. We see that he places a huge rectangle on the last 1 hour bearish candle, right? This would be our possible Order Block area where institutions seek to enter, mostly 50% of the body of the candle is usually where the majority of orders are found. As we can see after touching it, it shot. Leaving a huge shadow.
Well that is the theory, that institutions always seek to enter at that point, but in reality. My idea is that most only seek to enter at that point because it is too obvious a good entry.
If you want to believe that the institutions enter there, personally I do not consider it, if I mention it only it is for the theory, that I will always respect it but I will not share it exactly, each trader must forge their ideas but that they are consistent with the theory . You're not going to make up a new Elliot Waves Impulse rule.
We Identify Possible Orders Blocks
We can notice a possible ABCD Pattern, which is "confirmed", with the 1000 shorts from the institutional to the entire global economy, not just crypto, everything ..
Although we could also go to test the order blocks and try to break this bearish channel.
As well as we could see an ABCD, bullish. Maybe in an Order Block.
This bullish ABCD, I put it with red letters.
If you ask me, Total?, Here both patterns are being respected, it all depends on the increase or decrease of institutional shorts. Or if the retailers outperform the bears.
Both ABCD patterns are respected and both are possible, depending on what the majority of institutions do or if the retailers outbid.
We identify supports and resistances
The MACD indicator presents bearish divergence, losing upward strength, and initiating a possible downward fall.
The RSI continues to point lower, perhaps to touch areas of 24 RSI
Bitcoin is between the moving averages and the 59,000 resistance of the last two days. This narrow range trade suggests a state of equilibrium between the bulls and the bears.
If the uncertainty is resolved to the downside, it could fall 52,000
The bulls will try to defend this support and, if successful, the pair could extend its consolidation between 52,000 and 59,000 for a few more days.
The exponential moving average EMA20 gradually increasing by 56,500 and the RSI Relative Strength Index near the midpoint suggest a balance between supply and demand.
This balance may shift in favor of the bulls if the price sustains above 58,600. That could result in a march to the all-time high and then a breakout of 65,000. A break above this resistance may indicate the resumption of the bullish movement.
Conversely, a break below 52,500 may signal the start of a deeper correction to 46,000. A break below this support could trigger a panic sell.