Bitcoin Traders Beware!, Buyers Will win this War(Short Squeeze)
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Why do Support and Resistance hold but sometimes break forcefully? you may ask after bitcoin recent price actions.
I am sincerely more than happy😳 to welcome our new subscribers.
My analysis are always multi-timeframes, so please do expect a full week play out of my predictions.
as a result of my busy hectic schedules, I will be making only weekly analysis every weekends on what to expect from the market through out the new week before a new weekend.
I will do my best to try to constantly update the posts during the week, to keep you updated incase we have any sudden incoming changes in price action that could affect our results.
Thanks for your constant supports and understanding.
It is crazy to know that the bull(buyer) and the bear(seller) can be same trader at any point in time in the market, and sometimes even confused of what she/he should be doing, buying or selling.
To answer the above question, first I will start by explaining what Resistance and Support truly is in the most simplest way that I can, for the sake of new born traders reading along.
what then is Support And Resistance?
For Support;
The simplest definition I can gave you is that , a Support is simply an invincible form of form(🛏)made floor area on the chart where price somehow bounces off from, this invincible floor prevents price from going farther down
when falling from a higher price range as a result of coming in contact with an invincible barrier called resistance.
Ones price comes close to the support, here it manages to find a way to bounce back to the upside after being pushed down(sold off) by sellers in the market.
this support are build or formed by unusual huge number of buyers(when you have huge number of traders willing to buy at a particular price range on the chart) .
To better understand how a support works, I will like you to see this support built floor by the buyers as a form 🛌 floor because it is breakable and can be sliced to the worst piece with no remorse when the sellers are huge in numbers.
Here is my lil secret for trading supports (secret source😉):
*See support as an area on the chart and not a line because, it is likely price breaks the line only to find buyers below your line.
* Whenever price gets closer to support, start by focusing more on the candle formations even before it comes in contact with it. If any candlestick pierces the support with a full grown body, this will most likely mean that price could go down lower more if the next two to three candles doesn't give bulls(buyers) a bounce above the support area( the last swing low that was broken). It will likely seek the next support below for assistance of a bounce(price is looking for more buyers)
* If price gets to the support and starts to go side ways, then bounce strongly with strong reversal candle stick pattern, don't jump the gun yet, wait for price to come back to confirm by forming higher low on the support, to prove the buy power on the support, price always retest a support before taking off from it(if it finds large enough strong buyers, it will make a higher stronger bounce before it even touch the support on the retest, this therefore leads to a higher low as a result of too many traders watching that support and are racing each other on the buy zone , when more buyers see this they will also jump in because now they know that the support is likely to HOLD.
*The more a support is hit 🧐,the more lower the strength of the bounce grows, the more likely price will break below it. to trade, start by watching the candle sticks forming on the area of support. This simply means that, hitting the support countlessly times leads to it breaking because it is likely that soon one candle will break the support. too much sideways on support will lead to its break or pierce also.
* Support holds, but the can also sometimes easily break as well. When supports are broken they automatically turn to new resistance.this simply means that the buyers house is now having now owners(sellers), if you understand this particular tip, it easily explains why supports got broken in the first place because the buyers at home were to small in number to defend the house so sellers killed them all🤣(bull hunt) and took over the ownership of the support there by turning it into their now home(resistance),
*Horizontal support areas are the strongest while the slanting trendline buyers are weak and more prone to break easily.
What is Resistance ?
Resistance is simply an invincible Form🛌made barrier area where price comes in contact with then starts to drop, this invincible barrier prevents price from moving upward any further, next this barrier pushes price down(sometimes even after price successfully pushes above these barriers they some how manage to get the bulls tail and drag them back down, this is also know as fake out by price action traders. just like the buyers support, these resisitance areas built by sellers can be sliced to pieces if the buyers are huge in number and out number the sellers, the barrier will be 😱 destroyed 💸 with out remorse!
Here is my lil Resistance secret source😉:
here everything is just the opposite of my tip for support.
* when price starts to gets closer to the resistance, start focusing more on the candlestick formations even before it comes in contact. if any candlestick pierce the resistance with a full grown body(make sure the candle that follows doesn't close below the resistance, it will likely go down below more if the next two to three candles doesn't give bulls(buyers) a follow through, above the that resistance area that was broken. It is most likely, price will seek to retest that resistance if it succeed in breaking through the form barriers. buyers will allow price to comeback to the top of the barrier, here they will take time to reenforce and also make sure the barrier is turned into a new support( new home owners).
The current bitcoin price is in a buy support area. in my last analysis, the vertical support line was broken and price went below it to 28900 zone still within the horizontal support area, we saw price seeking stronger buyers zone on the support . I still remain bullish o! as I believe a short squeeze is coming, and can still see a strong bull bounce before the major retest of the last breakout of 12k resistance as a result of the weekly chart.
this new week coming we are likely seeing a reaction buy from the pullback. if buyers successfully holds the 32k support and get a bounce, their first target will be 37k resistance and if they succeed to break the edge at 39k of that barrier then 46k to 60k range will be their next target before a major big dump of over 40% drop will occur in my opinion.
but what if sellers break the support area as a result of countless touch?
Trading is a game of probability so yes the chances of that happening exist . though the first option has higher chances of playing out, if the second do play out instead, here is what to expect
then we will see this play out.
Why do Support and Resistance hold but sometimes break forcefully? you may ask after bitcoin recent price actions.
I am sincerely more than happy😳 to welcome our new subscribers.
My analysis are always multi-timeframes, so please do expect a full week play out of my predictions.
as a result of my busy hectic schedules, I will be making only weekly analysis every weekends on what to expect from the market through out the new week before a new weekend.
I will do my best to try to constantly update the posts during the week, to keep you updated incase we have any sudden incoming changes in price action that could affect our results.
Thanks for your constant supports and understanding.
It is crazy to know that the bull(buyer) and the bear(seller) can be same trader at any point in time in the market, and sometimes even confused of what she/he should be doing, buying or selling.
To answer the above question, first I will start by explaining what Resistance and Support truly is in the most simplest way that I can, for the sake of new born traders reading along.
what then is Support And Resistance?
The simplest definition I can gave you is that , a Support is simply an invincible form of form(🛏)made floor area on the chart where price somehow bounces off from, this invincible floor prevents price from going farther down
when falling from a higher price range as a result of coming in contact with an invincible barrier called resistance.
Ones price comes close to the support, here it manages to find a way to bounce back to the upside after being pushed down(sold off) by sellers in the market.
this support are build or formed by unusual huge number of buyers(when you have huge number of traders willing to buy at a particular price range on the chart) .
To better understand how a support works, I will like you to see this support built floor by the buyers as a form 🛌 floor because it is breakable and can be sliced to the worst piece with no remorse when the sellers are huge in numbers.
Here is my lil secret for trading supports (secret source😉):
*See support as an area on the chart and not a line because, it is likely price breaks the line only to find buyers below your line.
* Whenever price gets closer to support, start by focusing more on the candle formations even before it comes in contact with it. If any candlestick pierces the support with a full grown body, this will most likely mean that price could go down lower more if the next two to three candles doesn't give bulls(buyers) a bounce above the support area( the last swing low that was broken). It will likely seek the next support below for assistance of a bounce(price is looking for more buyers)
* If price gets to the support and starts to go side ways, then bounce strongly with strong reversal candle stick pattern, don't jump the gun yet, wait for price to come back to confirm by forming higher low on the support, to prove the buy power on the support, price always retest a support before taking off from it(if it finds large enough strong buyers, it will make a higher stronger bounce before it even touch the support on the retest, this therefore leads to a higher low as a result of too many traders watching that support and are racing each other on the buy zone , when more buyers see this they will also jump in because now they know that the support is likely to HOLD.
* Support holds, but the can also sometimes easily break as well. When supports are broken they automatically turn to new resistance.this simply means that the buyers house is now having now owners(sellers), if you understand this particular tip, it easily explains why supports got broken in the first place because the buyers at home were to small in number to defend the house so sellers killed them all🤣(bull hunt) and took over the ownership of the support there by turning it into their now home(resistance),
*Horizontal support areas are the strongest while the slanting trendline buyers are weak and more prone to break easily.
What is Resistance ?
Resistance is simply an invincible Form🛌made barrier area where price comes in contact with then starts to drop, this invincible barrier prevents price from moving upward any further, next this barrier pushes price down(sometimes even after price successfully pushes above these barriers they some how manage to get the bulls tail and drag them back down, this is also know as fake out by price action traders. just like the buyers support, these resisitance areas built by sellers can be sliced to pieces if the buyers are huge in number and out number the sellers, the barrier will be 😱 destroyed 💸 with out remorse!
Here is my lil Resistance secret source😉:
here everything is just the opposite of my tip for support.
* when price starts to gets closer to the resistance, start focusing more on the candlestick formations even before it comes in contact. if any candlestick pierce the resistance with a full grown body(make sure the candle that follows doesn't close below the resistance, it will likely go down below more if the next two to three candles doesn't give bulls(buyers) a follow through, above the that resistance area that was broken. It is most likely, price will seek to retest that resistance if it succeed in breaking through the form barriers. buyers will allow price to comeback to the top of the barrier, here they will take time to reenforce and also make sure the barrier is turned into a new support( new home owners).
The current bitcoin price is in a buy support area. in my last analysis, the vertical support line was broken and price went below it to 28900 zone still within the horizontal support area, we saw price seeking stronger buyers zone on the support . I still remain bullish o! as I believe a short squeeze is coming, and can still see a strong bull bounce before the major retest of the last breakout of 12k resistance as a result of the weekly chart.
this new week coming we are likely seeing a reaction buy from the pullback. if buyers successfully holds the 32k support and get a bounce, their first target will be 37k resistance and if they succeed to break the edge at 39k of that barrier then 46k to 60k range will be their next target before a major big dump of over 40% drop will occur in my opinion.
but what if sellers break the support area as a result of countless touch?
Trading is a game of probability so yes the chances of that happening exist . though the first option has higher chances of playing out, if the second do play out instead, here is what to expect
then we will see this play out.
Comment:
We see bulls fighting strongly to hold the 32k support to win it back. if they successfully cross 35k then they are likely to face another challenge with another sellers barrier at the range of 35 to 39k .
Comment:
Updating you on the current war between buyers and sellers on Bitcoin....
The 32k down to 28k support area is where the battle is currently staged. Bulls has to completely win back the 32k support to enable to get a bounce enough to change the current market structure from forming lower highs to a higher highs and higher lows. bears haven't enjoyed any short in this zone as we see buyers keep fighting strongly for the 32k support each time 30k is crossed below.
So should you still expect a bull bounce to 40k?
In my opinion, I still strongly see bulls taking shorters unaware to break the current range to the upside, But this will require lots of patient if you are stuck in BTC right now.
The 32k down to 28k support area is where the battle is currently staged. Bulls has to completely win back the 32k support to enable to get a bounce enough to change the current market structure from forming lower highs to a higher highs and higher lows. bears haven't enjoyed any short in this zone as we see buyers keep fighting strongly for the 32k support each time 30k is crossed below.
So should you still expect a bull bounce to 40k?
In my opinion, I still strongly see bulls taking shorters unaware to break the current range to the upside, But this will require lots of patient if you are stuck in BTC right now.
Comment:
And there goes the short squeeze,🐂 bulls made it to 38k just a day to the weekend. Do you till doubt that bulls will win this war😝?
Posting new analysis tomorrow Saturday.
Posting new analysis tomorrow Saturday.
