Chart Pattern Analysis Of Bitcoin
There are 4 candles stay below the uptrend line,
And then, k2 and K3 is a bearish engulfing pattern,
It verified the weakness of the uptrend line.
Besides, K3 nearly closed below K0.
There a group of bad signals.
So, it is a potential good place to short it here.
Stop loss set at 42000 or 42500.
Comment:
After K1 beak down, K2 verified the increasing supply pressure,
It turned the 40000 USD to a potential strong resistance.
If I was trapped here, I will cut off my long positions immediately.
K2 is a bullish hammer candle,
but it is not enough to reverse the downtrend immediately.
It should be verified by K3.
If K3 close upon K1, the bullish market will likely restore it strength.
But the possibility is relatively low here.
After K1 beak down, K2 verified the increasing supply pressure,
It turned the 40000 USD to a potential strong resistance.
If I was trapped here, I will cut off my long positions immediately.
K2 is a bullish hammer candle,
but it is not enough to reverse the downtrend immediately.
It should be verified by K3.
If K3 close upon K1, the bullish market will likely restore it strength.
But the possibility is relatively low here.
Comment:
From K2 to K3, the supply pressure is still at high level.
It seems that K3 verified the potential support.
The bullish momentum was temporarily stopped here.
K4 or K5 will likely price up to test the resistance for a second time.
If the demand decrease there,
It will be another good place to short it.
From K2 to K3, the supply pressure is still at high level.
It seems that K3 verified the potential support.
The bullish momentum was temporarily stopped here.
K4 or K5 will likely price up to test the resistance for a second time.
If the demand decrease there,
It will be another good place to short it.
Comment:
From K1 to K3, the supply pressure is decreasing,
And there are three candles stay upon the support.
The bearish momentum was stopped here.
So, it is likely that K4 or K5 will price up to test the nearest resistance(at about 41000 area).
I will try to short it there, if I find evidence of the supply pressure increasing there.
From K1 to K3, the supply pressure is decreasing,
And there are three candles stay upon the support.
The bearish momentum was stopped here.
So, it is likely that K4 or K5 will price up to test the nearest resistance(at about 41000 area).
I will try to short it there, if I find evidence of the supply pressure increasing there.
Comment:
Another resistance is at about 0.5-0.618fib area(44000),
K4 is very strong, but it should be verified by K5,
If the bullish momentum couldn't stay upon 40700,
the risk will increase.
I think the possibility of pricing up to test 44000 area is relatively high here.
Another resistance is at about 0.5-0.618fib area(44000),
K4 is very strong, but it should be verified by K5,
If the bullish momentum couldn't stay upon 40700,
the risk will increase.
I think the possibility of pricing up to test 44000 area is relatively high here.
Comment:
K2 tested the potential support,
The volume dropped to the lowest level,
The risk increased here.
It seems that the demand sharply decreased,
But it should be verified by K3 or K4.
If K3 failed to break up under increasing volume,
The support may lost its support here.
The previous uptrend line is also a potential strong resistance to the market.
If the following candles still stay upon the support,
The uptrend line may be tested in the coming days.
K2 tested the potential support,
The volume dropped to the lowest level,
The risk increased here.
It seems that the demand sharply decreased,
But it should be verified by K3 or K4.
If K3 failed to break up under increasing volume,
The support may lost its support here.
The previous uptrend line is also a potential strong resistance to the market.
If the following candles still stay upon the support,
The uptrend line may be tested in the coming days.
K1 just break down a potential support line under relatively increased volume.
It turned the support line to a potential resistance.
The previous support is also a neck line of a potential larger scale bearish double top pattern.
But, it should be verified by the following candles.
If the following candles still stay below the neck line,
The supposed bearish double-top pattern will in effect.
I think this process will not smooth for the bear force.
At the same time, a potential downtrend channel is on the way,
It means a recent possible price target is at 35500 area.
I will try to buy back there.