Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
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Bitcoin (XBTUSD) has been holding nicely after its last bullish move. Looking at the chart above, I see signals pointing to a retrace.
Let's take a look... Hit like and we will get started.
XBTUSD 4H TIMEFRAME
Bitcoin easily broke above all major resistance on the 8th February, without much retrace, it followed up on this bullish move on the 17 February to reach a peak on the 19th at $3972, now we are seeing signals of a retrace.
What's important to look at now are the support levels that will hold Bitcoin until its next move. And be prepared for all outcomes.
We have a range of $3730 - $3787 that can work nicely as main support short-term. These mark the peaks reached on the 19th January and 8th Feb.
At the same time, this is where EMA10 will be sitting soon.
The immediate support is EMA10 at $3888. As long as XBTUSD remains above EMA10, it maintains its bullish potential.
If it breaks below EMA10, we look for EMA50 and the above-mentioned main support range as support.
XBTUSD Remains bullish as long as its price stays above $3533. If its price breaks below this level, it would break the uptrend and a new analysis is needed, as the chances of it going lower highly increases.
On the way up, if Bitcoin can break the last peak at $4,000, it will quickly test $4200-$4400. There is strong resistance sitting at this level.
My view: I am expecting some sideways consolidation with Bitcoin remaining strong, with up to $100/$200 in price swings can happen before the next strong move. I am bullish short term.
Thanks a lot for reading.
Namaste.
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Prepare for the retrace:
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Altcoins market update in relation to Bitcoin (From previous analysis):
We saw massive bullish action from the altcoins before Bitcoin started to move. This is something that happens often when the bulls are in play, first the smaller market cap. altcoins move and then Bitcoin follows.
Now you see the altcoins slowing down, here is how this is going to play out according to past experience.
As long as Bitcoin moves up with good strength and momentum, the smaller alts (Binance, Bittrex, Poloniex, etc.) will take it easy and consolidate.
As soon as the time comes for Bitcoin to do its retrace, the alts will resume what they started just a few days.
While the altcoins are slow and retracing, we buy and load up. When Bitcoin stops they will definitely move up.
Here is our strategy for our altcoins trades in simple terms:
1) Buy when the market is RED. 2) Sell when the market turns GREEN.
So we buy when they go down and find support. We sell when they move up and hit the targets we have established before.
This is just a general idea, you can find more details in all the trades that I post.
This is all... Feel free to hit like if you want to show your support.
Namaste.
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Take a look at this article, it is a nice analysis on LONGs and SHORTs "Bitcoin LONG vs SHORT! THIS COULD BE IT" @Maitodai
The Rising Wedge breakout will guide us to the first red arrow on your chart - around $3,750.
There is a pretty strong support area where I expect a bounce upwards into the next leg up:
All the best!
AlanSantana
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@VaidoVeek, Thanks a lot for sharing... Love your charts always.
Great long and short article update, really adds value to the analysis. We're taking out 50% of our long trade right now since we got a double top and are letting the rest ride at the stop loss line. As always, love all your post man. Shalom!
There is a pretty strong support area where I expect a bounce upwards into the next leg up:
All the best!