Our analysis is based on 0.618 Fib Symmetry Intact. structure can be seen at the 1-day timeframe chart. The first formation starts on the 4th March 2018 when the price went down to the Fib 0 , consolidated and grew up to Fib 0.618 resistance. It didn't manage to break it and decreased to a level around previous . It happened two more times and now we have the same situation the price touched 0.618 level and correction started.
It is not a short signal, the grows confidently and the price is still above EMA200 level.
The next week is very important for Bitcoin . Its price will either solidly consolidate above EMA200 level, which will inevitably allow to break through 0.618 resistance and trigger a massive “bullish euphoria”, or will again bounce back to Fib 0 around $3 172.
There were many good fundamentals last month and more come out each day. This is a 4th time Bitcoin price tries to break through Fib 0.618 and change the global trend. Our opinion is that BTC has chances to start a new run. Overall we should carefully track price movement and open short positions once the price moves below EMA200 around $4 600 level
1. Double Top Rejection
The double top pattern is one of the most common technical patterns used by Forex traders. It’s certainly a good method of identifying a potential top. This price action pattern involves the formation of two highs at a critical resistance level. Here we have critical resistance level of Fib 0.618 around $5 300. The idea that the market was rejected from this level not once, but twice, is an indication that the level is likely to hold. Here we have a touch on 3rd of April and on 8th of April. This is quite a bearish sign that the resistance will hold again as times before
2. H&S Rejection
Possible formation of head and shoulders which could impulsively bring the price above the resistance has failed. Bull's trap formed instead of it
For now situation is quite negative. We recommend to hold and set a delayed short positions order if price goes below $4 600 level. It can be a stop loss for your long positions on BTC
At the 2-hours timeframe chart we have a penetration of critical resistance level of $5 324 and previous "tops", hence bearish double top pattern is broken too. Three times before the price was dumped down after it touched Fib 0.618 level and at last it penetrated it. We forecast an impulse growth in case the price consolidates above $5 324
Studying thoroughly other timeframes it can be seen that rising wedge is formed and this bearish pattern has a huge tendency for subsequent drop. However, on the 1-day timeframe chart we have a price action channel which still holds the current level.
BTC is not stable and both scenarios have a high probability to take place. It is a great time for marginal and swing traders
We recommend to wait before rising wedge fall to enter long BTC position, moreover you should wait for Bitcoin price consolidation before open any positions with Alts. New signals and updates are coming soon, stay tuned
SkyRock Signals team
The decrease which happened tonight is not a fall of rising wedge though, as the price still holds at $5 000 support level. In case of breakdown the price will go to $4 200 - 4 400 level
As for now most of Technical indicators are bearish, moreover trade volume decreases. Nevertheless we have a hidden bullish divergence which can accumulate momentum power for a further run above $5 400 level
Bitcoin price approaches to the critical resistance level of the 2nd scenario and will cross it soon. When it happens we will be in the green zone of the 1st scenario it means the party is on and market will continue its growth.
According to the technical analysis we are in strong buy state: ASO, MACD (10, 26) are bullish, while the price is above SMA&EMA (5, 10, 20, 25, 30, 50, 100, 200), moreover the volume is growing that is why we have unstoppable V shape rally
Positive TA moments:
1. Bitcoin’s Market Share Hits 8-Month High as Price Passes $6 000
2. The price is about to hit $7 000, so Bitcoin’s Price Spikes to 6-Month High
We are coming back to crypto trading from ForEx as many hot and profitable trades are coming at crypto market soon
As we can see Bitcoin has already made 40% upside movement after Breakout Level.
Consensus will end tomorrow on 15th May so there should be a correction phase. Be careful