October 26, 2018 - Bitcoin has BOTTOMED!

HUGE amount of accumulation last night and bulls defending support at 6388. Bears kept on trying to push the price down but during every dump attempt, huge bids would keep on piling back up. I believe this is a good indication of an upcoming breakout soon as bulls are accumulating and defending this support level with more buyers than sellers.

Meanwhile, we are still ranging sideways, however one thing I wanted to point out is that we are making higher lows and starting to curl upwards. This is a very BULLISH sign showing the start of change in momentum towards the upside. Also, if you've been trading this range, I would start to advise against shorting into the red box since we are beginning to look more bullish than sideways as of today.

Other things I wanted to note that I believe is a strong indication of bullishness is the histograms on the MACD.

The hourly histogram is bullish for the near term, looking like it's starting to make another big move soon.

Meanwhile, the 4hr histogram on the MACD has been coiling and starting to cross upwards. If this 4hr candle closes green by 20:00 10/26/2018 UTC, then it should signal a confirmation of a cross up. The important thing to note about the 4hr MACD chart is that it is forming a leveled out flat support towards the 0.00 level, another sign of a strong bullish momentum shift.

Looking at the daily MACD, we aren't even close to peaking yet for this upside move. There is still yet more to come. This is just the beginning folks.

The bigger picture:

On the weekly, we closed with an inverted hammer, which is a strong indication of a reversal from a downtrend (especially when it occurs on the larger time frame). We also got the lowest volume candle since October of last year, which was right before the huge bull rally started. Many may argue that low volume means bearishness, however that is not true if you have studied the DOW Theory. During a bear market cycle (or secondary/counter-trend), the end of the cycle is usually preceded by periods of extremely low and stagnant volume (some people call it the calm before the storm, but in technical terms, it's called the dull period of a cycle). So this low volume is actually a very good thing.

There are not very many bearish signs here, except for a bunch of bear traps that may look "bearish" to bears. If you want to look at the bearish side though, there are huge volume gaps here which would take us straight down to the 6160 support level if we were to break the current support. Below that and we free fall back to 5755. However, from what I have been seeing, there is a lot of accumulation occurring below 6400, do I do not believe that this level will break.

UNLESS............
twitter.com/BtcBlock.../1055773300897521664

This crypto whale decides to dump his 34,000 BTC which would take us straight down to the 6.1k level.

Comment:

I wanted to note that there is still a possibility of a liquidity run down to 6.2, however I don't think it will happen given how much accumulation there was below 6.4 last night. If we were to be driven back down to 6.2, there will be a lot of chipper whales waiting to buy.

Comment:

4hr ADX starting to move upwards. Good sign of breakout happening soon if we manage to climb up above 25.

Comment:

Possibility of a liquidity run before pump.

Comment:

-We got the liquidity run that I was expecting.
-We held support at the HVN at 6.2 level.
-Also the volume gap has been filled (marked in X).
-Bullish Divergence has formed on the hourly.
-Hourly MACD Crossed Up
-Buy signals were triggered for my private "Magic Hat" and WRSI indicator.

I am expecting a near-term retest towards the upside previous support level of 6366.

Comment:

Bitcoin showing some sign of weakness failing to break back into the green zone range. Looks like we have established a range from 6209 to 6294.

I will be watching how the daily closes tomorrow. If we close below 6251.4, I expect a dump down to the 6k level. If we manage to close above that, I expect us to pump up to our bullish 6366 target.

Comment:

Watching on 1hr DMI to cross up for a bullish movement towards our 6366 target.

4hr Buy Signal on the Magic Hat

Comment:

-Hourly DMI Cross bullish
-Daily closed above my 6251.4 target

Conditions are ripe for my next 6366 target. I wouldn't be surprised if we go much higher than that with a huge 800-1000 point hulk candle above 7k given that this dump was a possibility of a liquidity run before a bull rally.

Comment:

twitter.com/whalewat.../1057320479604834305

So far, this price action is lacking a lot of buyers and volume. I believe this whale will be dumping his 1500 Bitcoins if we continue to lack volume.

Hourly DMI is beginning to cross down again indicating more sideways chop and the Magic Hat indicator is beginning to generate some impulsive signals meaning a near-term move is coming for the hourly (likely downwards). I believe we will see a swing low attempt first before any further upside here. Lets see how well bulls will defend 6.2 level.

Happy sideways.

Comment:

Note: I am still bullish towards 6366. However, I believe the next hourly swing will be to retest the 6.2 level.

Comment:

Nailed that call perfectly on the previous update. We got the 6.2 retest and run up towards 6366 test.

If we decide to breakout above the highs of 6.5k, I expect us to run up to a minimum of 7.7 - 7.8k on the upcoming move.

Comment:

Now that we got some price structure formed, I believe we will oscillate sideways in this green area to fill up the volume gap (marked with X on the right). After that volume gap is filled, I'll be looking for more upside depending on price development.

Comment:

Sidenote: I had a personal target of 6173 (calculated by subtracting the sideways-lows by the size of the sideways-range), however we couldn't even break below 6.2 on that bear-trap/liquidity run. This is a sign of extreme bullishness. I believe there is a strong probability that we will break upwards rather than downwards after the volume gap (from previous update) is filled.

Comment:

As predicted again, we hit my 6366 target perfectly and got a very nice rejection right off of it. More PA development needed to see where this market goes. I will continue posting updates when the smoke has cleared.

Comment:

Note: I am overall bullish. Shorts have finally began dropping down as bears are beginning to succumb to the bulls. Altcoins are beginning to gain some traction. The overall market looks healthy and well for more upside. However, this is just based off fundamentals. There are no further targets yet.

Comment:

I'm thinking we will likely run stops below 6.3 before getting another pump, however I personally wouldn't bet on this play. Long entry target areas are 6280 - 6290.

Comment:

Didn't realize this article was marked as private. Please refer to my new link above.