Bitcoin BTC - What is next after the pump and dump? Buy or sell?
Bitcoin BTC - What is next after the pump and dump
Dear friends
You see here the 12 hours chart of Bitcoin. This is therefore a medium term analysis. We see that after the pump and dump action that Bitcoin has dropped and is still in the trading range. This range is between the gray zones from 28800 to 42000 USD.
How do we proceed in this range is the big question. In a range, a stochastics or other oscillator works best. So below is a stochastics and it is now crossed and in overbought modus.
The best time to take a long position is at the bottom of the range and a short position (or just no position and sidelines ) when the price is at the top of the range. So currently Bitcoin is somewhere in the middle.
Right now the stochastics is suggesting a decline because it has crossed and is over bought.
For going long, the best buying moment is to wait for the Stochastics indicator to drop below the 20 level and then make a cross upwards or go short with a stop at 42000 when the price of Bitcoin hit the upper boundery of the trading range. You can also use Candlestick patterns at the top and the bottom for entry signals and of course you need to zoom in on a lower timeframe like the 4 and 1 hour. This will help to find a more precise entry.
A divergence in the stochastics is extra confirmation but as you already know, it is not always happening. By the way friends, you do not need to be in the market all the time unless you are trading on the very short term. Of course you have the problem that the market goes on 24 hours a day and therefore also when you are sleeping...
The stop loss is exactly below 28800 for Longs and 42000 for short positions.
So now it is waiting see Bitcoin going to the bottom or top of the range for a low risk high reward trade. This is because the stop can be placed close to the entry and the targets are far away. In the middle it is much more risky because of the chaotic price behaviour and manipulation.
What is the expectation now? A rectangle after a drop (red arrow) is a continuation pattern. The longer it lasts the more reliable it is. This does not mean that it always happens. It may be that we break out on the upside but again according to the rules of TA it is on the downside.
If this is reliable now with the unlimited printing of central bank Dollars en Euro's with the trillons that is the question. We see in the stockmarket already a rise since the central banks are printing unlimited dollars and we now even have all time highs. This happens all in a period of Covid, huge rise in debt and more. So it is very clear that the money is just indirectly injected in the markets what prohibits a stockmarket crash already for 10 years in a row). Bitcoin however did decline 50% but now it is integrated in more special funds, so the impact of the printed Dollars will increase for sure.
What are the targets if we get a breakout? That is the largest move in the range that is projected on a breakout to the upside or to the downside of the range.
A breakout below 28800 has a target of 17500 usd and a breakout above 53000 usd. It is clear and simple which is always the best!
The ideal time to buy on a breakout however is after a retest of the breakout level. see the chart for examples.
Very important: After a breakout the stochastics can be a long time in overbought or oversold mode because oscillators work well in a trading range but not in a trending market.
Can you trade within the range? Yes perfectly possible if you trade on shorter timeframes. However, this analysis is for the medium term. The longer the time frame the more reliable the results are because the noise has been filtered out.
--- > In this market I advice to use tight stops. <---
Please share your thoughts and idea's below dear friends. What do you think and why do you think it with or without a chart.
I wish you all good luck with trading!
Disclaimer This is my view, no advice to buy or sell. Also always do your own research!
--->> Dear friends please follow me for updates and give me support with a like 👍 if you like me to continue this work. Thanks 💚
Dear friends
You see here the 12 hours chart of Bitcoin. This is therefore a medium term analysis. We see that after the pump and dump action that Bitcoin has dropped and is still in the trading range. This range is between the gray zones from 28800 to 42000 USD.
How do we proceed in this range is the big question. In a range, a stochastics or other oscillator works best. So below is a stochastics and it is now crossed and in overbought modus.
The best time to take a long position is at the bottom of the range and a short position (or just no position and sidelines ) when the price is at the top of the range. So currently Bitcoin is somewhere in the middle.
Right now the stochastics is suggesting a decline because it has crossed and is over bought.
For going long, the best buying moment is to wait for the Stochastics indicator to drop below the 20 level and then make a cross upwards or go short with a stop at 42000 when the price of Bitcoin hit the upper boundery of the trading range. You can also use Candlestick patterns at the top and the bottom for entry signals and of course you need to zoom in on a lower timeframe like the 4 and 1 hour. This will help to find a more precise entry.
A divergence in the stochastics is extra confirmation but as you already know, it is not always happening. By the way friends, you do not need to be in the market all the time unless you are trading on the very short term. Of course you have the problem that the market goes on 24 hours a day and therefore also when you are sleeping...
The stop loss is exactly below 28800 for Longs and 42000 for short positions.
So now it is waiting see Bitcoin going to the bottom or top of the range for a low risk high reward trade. This is because the stop can be placed close to the entry and the targets are far away. In the middle it is much more risky because of the chaotic price behaviour and manipulation.
What is the expectation now? A rectangle after a drop (red arrow) is a continuation pattern. The longer it lasts the more reliable it is. This does not mean that it always happens. It may be that we break out on the upside but again according to the rules of TA it is on the downside.
If this is reliable now with the unlimited printing of central bank Dollars en Euro's with the trillons that is the question. We see in the stockmarket already a rise since the central banks are printing unlimited dollars and we now even have all time highs. This happens all in a period of Covid, huge rise in debt and more. So it is very clear that the money is just indirectly injected in the markets what prohibits a stockmarket crash already for 10 years in a row). Bitcoin however did decline 50% but now it is integrated in more special funds, so the impact of the printed Dollars will increase for sure.
What are the targets if we get a breakout? That is the largest move in the range that is projected on a breakout to the upside or to the downside of the range.
A breakout below 28800 has a target of 17500 usd and a breakout above 53000 usd. It is clear and simple which is always the best!
The ideal time to buy on a breakout however is after a retest of the breakout level. see the chart for examples.
Very important: After a breakout the stochastics can be a long time in overbought or oversold mode because oscillators work well in a trading range but not in a trending market.
Can you trade within the range? Yes perfectly possible if you trade on shorter timeframes. However, this analysis is for the medium term. The longer the time frame the more reliable the results are because the noise has been filtered out.
--- > In this market I advice to use tight stops. <---
Please share your thoughts and idea's below dear friends. What do you think and why do you think it with or without a chart.
I wish you all good luck with trading!
Disclaimer This is my view, no advice to buy or sell. Also always do your own research!
--->> Dear friends please follow me for updates and give me support with a like 👍 if you like me to continue this work. Thanks 💚
Comment:
Divergence!
Dear Friends,
Bitcoin is forming a bearish rising wedge. Volume is falling but price is rising. A large bearish divergence in the RSI can also be seen.
Expect a pullback to 35000 or 33370. Is immediately also the breakout of the inverted head shoulder formation.
I notice that the overall volume has increased and I wouldn't be surprised if this is all additional Federal Reserve money disappearing into Bitcoin here. remember they print trillions and is indirect injected in the stockmarkets and trough other constructions proabably alos in Bitcoin.
That would possible imply that there is some sort of concrete floor at 29-30000 usd. Also of course the 4 year cycle is not over yet so a further rise after a small or bigger correction is to be expected! Keep this in mind!
If you want to day trade this priceaction then my advice is to use tight stops and short targets. This way you can secure profits.
Good luck dear friends
Dear Friends,
Bitcoin is forming a bearish rising wedge. Volume is falling but price is rising. A large bearish divergence in the RSI can also be seen.
Expect a pullback to 35000 or 33370. Is immediately also the breakout of the inverted head shoulder formation.
I notice that the overall volume has increased and I wouldn't be surprised if this is all additional Federal Reserve money disappearing into Bitcoin here. remember they print trillions and is indirect injected in the stockmarkets and trough other constructions proabably alos in Bitcoin.
That would possible imply that there is some sort of concrete floor at 29-30000 usd. Also of course the 4 year cycle is not over yet so a further rise after a small or bigger correction is to be expected! Keep this in mind!
If you want to day trade this priceaction then my advice is to use tight stops and short targets. This way you can secure profits.
Good luck dear friends
Comment:
Dear friends,
This is an update from the original chart.
We see the rising wedge is broken to the downside and also there are different divergences. Here in the stochastics but also in the RSI and others.
Bitcoin is holding strong and the divergences seems to have little impact before.
If the big funds want Bitcoin up it will happen en we see also extra volume which was not there before! Just keep an eye on the levels in the chart because they are the most important ones.
We can expect more spikes in the price with the current behaviour of Bitcoin.
Trade safe friends and use tight stops to protect your capital.
Succes dear friends!
This is an update from the original chart.
We see the rising wedge is broken to the downside and also there are different divergences. Here in the stochastics but also in the RSI and others.
Bitcoin is holding strong and the divergences seems to have little impact before.
If the big funds want Bitcoin up it will happen en we see also extra volume which was not there before! Just keep an eye on the levels in the chart because they are the most important ones.
We can expect more spikes in the price with the current behaviour of Bitcoin.
Trade safe friends and use tight stops to protect your capital.
Succes dear friends!
Comment:
Update
Bitcoin is showing strength. In my opinion, there should have been a correction already so the big question is whether it will come.
A larger rising wedge has formed, there are bearish divergences, volume is falling during the rise and so on.
Now wait and see is the message until the 42500 level is broken on volume. When that happens Bitcoin will be the first to seek the 53000 level.
Buy only on a re-test is my advice to avoid a possible bear-trap because this market is controlled by manipulation.
If Bitcoin falls below the blue trend line of the rising wedge a drop to 33-35000 usd is to be expected.
Good luck dear friends!
Bitcoin is showing strength. In my opinion, there should have been a correction already so the big question is whether it will come.
A larger rising wedge has formed, there are bearish divergences, volume is falling during the rise and so on.
Now wait and see is the message until the 42500 level is broken on volume. When that happens Bitcoin will be the first to seek the 53000 level.
Buy only on a re-test is my advice to avoid a possible bear-trap because this market is controlled by manipulation.
If Bitcoin falls below the blue trend line of the rising wedge a drop to 33-35000 usd is to be expected.
Good luck dear friends!
Comment:
Update,
Dear friends a quick update here on the daily chart.
Bitcoin is still in the trading range. Some think it has already broken out to the upside but that is clearly not the case yet. The red arrows indicate where in the past the price bounced.
By the way, a breakout should also be accompanied by good and more than average volume. However, we see that the volume is decreasing while the price is rising. The negative divergences, the rising wedge are all factors but as mentioned before.
The big funds control this game and my suspicion is that they will just push the price further up despite all the negative characteristics of a correction stopping out all the traders who are short.
Going short is therefore not what I personally will do at the moment. The sideline and waiting until there is a valid breakout up or down is i.m.o. the best way.
Good luck dear friends!
Dear friends a quick update here on the daily chart.
Bitcoin is still in the trading range. Some think it has already broken out to the upside but that is clearly not the case yet. The red arrows indicate where in the past the price bounced.
By the way, a breakout should also be accompanied by good and more than average volume. However, we see that the volume is decreasing while the price is rising. The negative divergences, the rising wedge are all factors but as mentioned before.
The big funds control this game and my suspicion is that they will just push the price further up despite all the negative characteristics of a correction stopping out all the traders who are short.
Going short is therefore not what I personally will do at the moment. The sideline and waiting until there is a valid breakout up or down is i.m.o. the best way.
Good luck dear friends!
Comment:
Wedge is finally broken!
Target 1,2 and 3
Succes dear friends!
Target 1,2 and 3
Succes dear friends!
Just an example how you can trade this on the 1 hour time frame and you see a trendchannel with a Diamond topping pattern.
Therefore it is always so important to zoom out and have a birdview of the situation.
I will of course not update day trading patterns here but it is pretty easy to do this yourself as long as it fit in the bigger picture!
Wish you succes and great profits dear friends!