Bitcoin approaching $50,000 with strong bullish signs
Hello traders! Just wanted to give a quick update on Bitcoin, it is currently showing some potential signs of bullish contination here. I am seeing these potential signs of more upside and will go into each concept a little further below.
Bullish Signs Explained:
1. The price continues to print Higher Lows (HL's) which is characteristic of a strong upwards trend.
2. The price is swinging between two converging trendlines forming a potential Ascending Triangle pattern, another sign of potential bullish continuation.
3. The price has "S/R Flipped" (Support & Resistance Flipped) the previous resistance of 39600-40000$ USD, as you can see we are starting to increase in value from this area which is another potential sign the buyers are now in control once again over the sellers.
1. Higher Lows (Market Trend)
What is a trending market?
A trending market is a market that is moving generally in one direction, upwards or downwards. There may be small sideways "consolidations" or "pauses" but the overall direction of the market continues in that direction (an Uptrend or Downtrend).
Uptrends can be identified by the consecutive appearance of Higher Lows and Higher Highs (HLs & HHs) on the chart.
Downtrends can be identified by the consecutive appearance of Lower Lows and Lower Highs (LLs & LHs) on the chart.
As you can see Bitcoin is clearly in a strong uptrend, printing consecutive Higher Highs and Higher Lows on the price chart, until this price structure is invalidated we have no clear signs of Bitcoin slowing down just yet.
2. Ascending Triangle
The Ascending Triangle is identified by price making 5 swings between a Right Angled Triangle, while ascending (increasing in value after each consecutive downwards swing). This pattern can be a potential sign that the price can actually continue upwards, and requires 5 perfect touches within the pattern to be considered valid. Bitcoin is currently on 5 touches of this pattern so something to watch out for.
Eventually as the price squeezes between the two converging trendlines we can see a breakout of the Ascending Triangle Pattern (usually upwards), a key characteristic of the pattern is also the Higher Lows as described above in Market Trend. The pattern height is measured and added to the top of the structure for a potential price target.
Entry points are at (A) and second on (B) at the next potential "S/R Flip" which i describe below. One thing to watch out for is a false breakout which means that the price can shoot out above or below the pattern; tricking traders then quickly reversing the other direction. If this does not occur then i expect Bitcoin to head up to the $45,000 region soon.
Key Characteristics:
-5 Touches minimum
-Declining volume usually
-Right Angled
-Higher Lows in price structure
-Above average success rate
3. S/R Flips (Support & Resistance Flips
Marked on the chart with horizontal lines & transparent zones are Support & Resistance areas, to describe it in layman's terms: a asset can decrease in value from a Resistance Area and increase in value from a Support Area.
Eventually when price revisits these areas multiple times the buyers or sellers can outweigh the latter leading to the price to push through the area, it is common for it to come back to the area once last time before "flipping" it. A previous Resistance now becomes Support, and a previous Support can now potentially become Resistance.
I have marked the key resistance area in red, if we can see a Support & Resistance flip here above $41450 it could be a potential sign that there is alot of buying momentum still occurring on Bitcoin. (The yellow lines show what the Support & Resistance Flip would look like).
As you can see we have already flipped the previous resistance (the image below is the same chart, only highlighting the previous S/R Flip) so we are looking for the same thing to happen at the next resistance area marked above.
So that is my current update for Bitcoin, i hope you found it informative, thank you for taking the time to check it out and if you want to show your appreciation you can like the idea or follow my trading view page thank you!
Bullish Signs Explained:
1. The price continues to print Higher Lows (HL's) which is characteristic of a strong upwards trend.
2. The price is swinging between two converging trendlines forming a potential Ascending Triangle pattern, another sign of potential bullish continuation.
3. The price has "S/R Flipped" (Support & Resistance Flipped) the previous resistance of 39600-40000$ USD, as you can see we are starting to increase in value from this area which is another potential sign the buyers are now in control once again over the sellers.
1. Higher Lows (Market Trend)
What is a trending market?
A trending market is a market that is moving generally in one direction, upwards or downwards. There may be small sideways "consolidations" or "pauses" but the overall direction of the market continues in that direction (an Uptrend or Downtrend).
Uptrends can be identified by the consecutive appearance of Higher Lows and Higher Highs (HLs & HHs) on the chart.
Downtrends can be identified by the consecutive appearance of Lower Lows and Lower Highs (LLs & LHs) on the chart.
As you can see Bitcoin is clearly in a strong uptrend, printing consecutive Higher Highs and Higher Lows on the price chart, until this price structure is invalidated we have no clear signs of Bitcoin slowing down just yet.
2. Ascending Triangle
The Ascending Triangle is identified by price making 5 swings between a Right Angled Triangle, while ascending (increasing in value after each consecutive downwards swing). This pattern can be a potential sign that the price can actually continue upwards, and requires 5 perfect touches within the pattern to be considered valid. Bitcoin is currently on 5 touches of this pattern so something to watch out for.
Eventually as the price squeezes between the two converging trendlines we can see a breakout of the Ascending Triangle Pattern (usually upwards), a key characteristic of the pattern is also the Higher Lows as described above in Market Trend. The pattern height is measured and added to the top of the structure for a potential price target.
Entry points are at (A) and second on (B) at the next potential "S/R Flip" which i describe below. One thing to watch out for is a false breakout which means that the price can shoot out above or below the pattern; tricking traders then quickly reversing the other direction. If this does not occur then i expect Bitcoin to head up to the $45,000 region soon.
Key Characteristics:
-5 Touches minimum
-Declining volume usually
-Right Angled
-Higher Lows in price structure
-Above average success rate
3. S/R Flips (Support & Resistance Flips
Marked on the chart with horizontal lines & transparent zones are Support & Resistance areas, to describe it in layman's terms: a asset can decrease in value from a Resistance Area and increase in value from a Support Area.
Eventually when price revisits these areas multiple times the buyers or sellers can outweigh the latter leading to the price to push through the area, it is common for it to come back to the area once last time before "flipping" it. A previous Resistance now becomes Support, and a previous Support can now potentially become Resistance.
I have marked the key resistance area in red, if we can see a Support & Resistance flip here above $41450 it could be a potential sign that there is alot of buying momentum still occurring on Bitcoin. (The yellow lines show what the Support & Resistance Flip would look like).
As you can see we have already flipped the previous resistance (the image below is the same chart, only highlighting the previous S/R Flip) so we are looking for the same thing to happen at the next resistance area marked above.
So that is my current update for Bitcoin, i hope you found it informative, thank you for taking the time to check it out and if you want to show your appreciation you can like the idea or follow my trading view page thank you!
Comment:
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Bitcoin not looking the greatest currently if we lose this curved trendline the potential is there for more downside.