Hello Traders,
If you remember my previous analysis, I mentioned that we will have another bearish breakout after that huge bearish engulfing candle and potentially find a support around $3678. AND LOOK AT THAT!
After that bounce from $3678 we did not see any significant bearish follow through, which tells me that bear may have exhausted after that push. If Bitcoin manages to establish that level as a strong support, this is very bullish move because I see potential inverse head and shoulders pattern formation. The breakout from the inverse head and shoulder pattern is roughly around $4600-$4700 where we will probably see daily 200 MA. Therefore, I will long my position now as long as it stays above $3678.
Happy trading!
If you remember my previous analysis, I mentioned that we will have another bearish breakout after that huge bearish engulfing candle and potentially find a support around $3678. AND LOOK AT THAT!
After that bounce from $3678 we did not see any significant bearish follow through, which tells me that bear may have exhausted after that push. If Bitcoin manages to establish that level as a strong support, this is very bullish move because I see potential inverse head and shoulders pattern formation. The breakout from the inverse head and shoulder pattern is roughly around $4600-$4700 where we will probably see daily 200 MA. Therefore, I will long my position now as long as it stays above $3678.
Happy trading!
Comment:
I am getting very confused now, and so as many traders.
1) Many short position was closed in past 1 hour:
2) Many long position was also closed in past 1 hour:
We saw another huge wick to the downside, but the bull could not capitalize it and we are back to neutral zone again as Bitcoin confirmed $3872 as resistance. To be honest with you, after the huge wick from yesterday, I keep having a bad feeling.
1) Many short position was closed in past 1 hour:
We saw another huge wick to the downside, but the bull could not capitalize it and we are back to neutral zone again as Bitcoin confirmed $3872 as resistance. To be honest with you, after the huge wick from yesterday, I keep having a bad feeling.
Comment:
Critical point for Bitcoin:
If we have bearish breakout right now, the target is $3400 where we saw our higher low in macro-scale. It is such a stressful time for Bitcoin trader because I just don't see any clear direction.
I start to wonder if we need to test $3400 to form double bottom, to lower daily 200 MA down to $4000 and see bullish breakout from there.
If we have bearish breakout right now, the target is $3400 where we saw our higher low in macro-scale. It is such a stressful time for Bitcoin trader because I just don't see any clear direction.
I start to wonder if we need to test $3400 to form double bottom, to lower daily 200 MA down to $4000 and see bullish breakout from there.
I am aware that majority of the professional traders were expecting this drop, but I am actually surprised that bears did not capitalize this move at all. To be honest with you, I expected some side way action when it hit $3680, but bulls bought the dip and pushed the price to neutral zone.
However, did bull really buy in this wick?
What if bears were just recycling the money in this huge wick to make bull think it is a good time to long Bitcoin? I mean I was very bullish when my order filled in at $3680. However, technical speaking, I still don't see any trend reversal signal in 4 hour chart. You can argue that there is bullish divergence in, but bullish divergence is much more powerful if you connect body, not the wick. Also, it seems like $3830 is acting as a heavy resistance at the moment, and I start to wonder if we will see some ping pong action between $3700 and $3800.
This is just my observation and market feeling, and I really hope that I am wrong. But when I look back some major cryptocurrency chart again (bnb, ada, xrp, and ltc), I just don't think the retracement is over yet. I am still waiting BNB to hit $9, LTC to $40, and EOS to $3.1. Be very careful, we may see another drop...