Hello Traders,
After 2 weeks of massive bull runs in bitcoins and alt coins, it is about time for another correction.
I see a lot of analysts constantly updating their technical analysis and constantly changing their point of view. Yes, it is important to be adaptable in crypto environment, but I feel like it is really not an analysis if you can't predict what is coming ahead in next few days or even few weeks. Analyzing chart is not about predicting the future, but rather I feel like I am learning someone's entire life. Keep that in mind, let me show some of my perspective on the Bitcoin.
Let me first categorize my chart in three different sections: bear market area (blue box or below purple line), bear vs bull area (yellow box or in between purple line and orange line), and followed by bull market area (aove orange line). Our ultimate goal is to reach bull market area where we can expect substantial profit.
After Bitcoin above over the purple trendline, we saw somewhat indecisiveness in price action as we hovered around for more than 3 days. As a result of massive fight between bull and bears, the market decided to move forward, and hit the resistance at $9700. I actually expected this to happen as this point is where orange line and red trendline intersect and RSI indicated Bitcoin was oversold. As Bitcoin bounced at $9700, I suspected it to find support at $9000 level, but Bitcoin decided to find its support at EMA 50 twice in last couple days. From my experience, testing EMA 50 twice within 2-3 days period is extremely unhealthy, and this surge in selling volume was a logical movement.
I believe that next 4-12 hours will be extremely interesting for Bitcoin.
First of all, Bitcoin is retesting EMA 50 again. Failed to find support this level will be bearish signal for me and most likely it will test $8600 followed by $8400 (EMA 200) in unfortunate scenario. Failed to find support at $8400 will send us $7400 without any interceptions. (highly unlikely scenario)
If Bitcoin manages to find support EMA 50, then most likely it will contest this red/orange trendline in a very high probability.
What I want you think here is that bear want to prolong bear trend as much as possible, while bulls want to reach bull market area as soon as possible.
This is why it is VERY important for Bitcoin to show a strength here, as fail to bounce at this level decreases the possibility of Bitcoin to go back to the bull area.
Aside of reading the chart, I just don't see any negative news in the crypto space other than Mt. Gox transferred another big batch of Bitcoin. I am still fairly bullish on Bitcoin, and this dip may be the last dip before we take off. My target for mid-term is 10,000 followed by 11,500 (pitchfan trendline).
Happy trading!
After 2 weeks of massive bull runs in bitcoins and alt coins, it is about time for another correction.
I see a lot of analysts constantly updating their technical analysis and constantly changing their point of view. Yes, it is important to be adaptable in crypto environment, but I feel like it is really not an analysis if you can't predict what is coming ahead in next few days or even few weeks. Analyzing chart is not about predicting the future, but rather I feel like I am learning someone's entire life. Keep that in mind, let me show some of my perspective on the Bitcoin.
Let me first categorize my chart in three different sections: bear market area (blue box or below purple line), bear vs bull area (yellow box or in between purple line and orange line), and followed by bull market area (aove orange line). Our ultimate goal is to reach bull market area where we can expect substantial profit.
After Bitcoin above over the purple trendline, we saw somewhat indecisiveness in price action as we hovered around for more than 3 days. As a result of massive fight between bull and bears, the market decided to move forward, and hit the resistance at $9700. I actually expected this to happen as this point is where orange line and red trendline intersect and RSI indicated Bitcoin was oversold. As Bitcoin bounced at $9700, I suspected it to find support at $9000 level, but Bitcoin decided to find its support at EMA 50 twice in last couple days. From my experience, testing EMA 50 twice within 2-3 days period is extremely unhealthy, and this surge in selling volume was a logical movement.
I believe that next 4-12 hours will be extremely interesting for Bitcoin.
First of all, Bitcoin is retesting EMA 50 again. Failed to find support this level will be bearish signal for me and most likely it will test $8600 followed by $8400 (EMA 200) in unfortunate scenario. Failed to find support at $8400 will send us $7400 without any interceptions. (highly unlikely scenario)
If Bitcoin manages to find support EMA 50, then most likely it will contest this red/orange trendline in a very high probability.
What I want you think here is that bear want to prolong bear trend as much as possible, while bulls want to reach bull market area as soon as possible.
This is why it is VERY important for Bitcoin to show a strength here, as fail to bounce at this level decreases the possibility of Bitcoin to go back to the bull area.
Aside of reading the chart, I just don't see any negative news in the crypto space other than Mt. Gox transferred another big batch of Bitcoin. I am still fairly bullish on Bitcoin, and this dip may be the last dip before we take off. My target for mid-term is 10,000 followed by 11,500 (pitchfan trendline).
Happy trading!