jacobcanfield

Bitcoin Weekly Close Major Decision Point Near Apex Of Triangle

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract


Good evening traders. I thought for this analysis, I would give a bit more practical scenarios for Bitcoin movements in the coming days.

From a high time frame perspective, we are have been consolidating in a 20% range for over 2 months now. We are just bouncing back and forth between the 50% fibonacci zone and previous weekly resistance from March 2018 and the 38.2% fibonacci zone and weekly resistance from April 2018 that has now flipped as support.

I also want to state that from a macro view, I am definitely bullish . We are seeing the market in shambles amidst trade wars and currency wars along with gold and alternative stores of value rising. I have no problem with building long positions at $10k, $9500, $9000 or even $8000 zones.

I also want to follow that up with saying it is important to hedge your bets with futures contracts to plan for a move in either direction when evidence is showing a potential drop .



This analysis will be a bit more of a shorter time frame analysis to go along side my previous chart on the 'secret bitcoin buy zones.'

If you haven't checked that analysis out, please do so here.


We have eerily similar structures as last week that are painting a bearish picture that could culminate towards another high volume Sunday sell off like we had last week.

When we sold down, it was obvious that someone was filling their longs as we wicked right back up on the 4 hour chart. (see Green arrow.)

We now have a similar trendline and structure as we approach another weekly close.

Are we going to see another sell off as someone fills their long side buy orders as we take out the weak hands and high leverage longs?

The key is breaking this $10,000 level first, which isn't so easy to do.

So what the hell is holding us up?

Although it seems like a random psychological number actually has a technical level behind it.

It actually coincides with the 100DMA (daily moving average.) and so far we have tested it a total of 6 times. Every time we test it, buys come into the market and push us back up to retest our triangle resistance.

We also rejected at the 20MA where I took my short on the futures market.



The more times a support or resistance is tested, it actually gets weaker, which gives more weight to the 'bearish' case.

But as they say in trading, us something until it no longer works.

So as long as we are above the 200MA, we are okay. But as soon as it breaks, we will most likely see a high volume test to the downside for liquidity.

In regards to the order books, there are significant bids on bitfinex and coinbase to the tune of 2500-3000 BTC down to the $9,000 level.

This means that will be one tough level to crack.

On our futures chart, we also have the 100DMA (daily moving average) and a gap around $8700-$9000 that has not been filled yet.

There is also another gap around $11,700 that we can see as well.



Gaps on the futures chart really like to get filled.

There is also a head and shoulders pattern forming on the 4 hour with a potential measured move down to our $9100 level.


As for alts, if Bitcoin does break up out of our trendline , I expect a mass sell off yet again as we push back down to lower levels.

If Bitcoin can break down, I expect alts (especially majors like ETH and XRP) to get a bounce. (In Bitcoin value, not USD value.)

Dominance is currently forming a symmetrical triangle at the top of a very steep rising wedge , but the 70% zone has formed a strong base that isn't going down without a fight.



It is possible that we do break upwards as the liquidity and volume in the market is very low, so keep your eye out for a trendline / horizontal resistance break at $10,400 for a potential push to $11,000.



As always, please manage your risk appropriately as we prepare for both scenarios and please leave comments below if you are enjoying my work.

Thanks for reading and if you could take a moment to like the chart, it would mean a lot to support my work.
Comment: I forgot to include this as well.



This is a similar structure in that we have a 50% fibonacci pull back and consolidation triangle.

A quick note and reminder. I am short from higher up with my stop loss moved into profit and ready to be closed manually.

This means that if we do break to the upside off of this daily support, I will still have spot bitcoin and will enjoy the move upwards.

If you are not in a position, its best to either buy here (daily support and 100DMA) with a stop below ($9800) or wait for the break out and buy the pull back.

Ideal scenario is we can get some solid buys in the $9000 zone, but as long as the 100DMA holds, it is not ideal to short into a support.

Remember, buy support and sell resistance. Same goes with long and short.

It is typically unwise to short a daily support and long a daily resistance. It's better to let the level break and short the retest.
Comment: Bang
✅Want To Learn How To Trade Crypto In Just 21 Days?
Join The Next 21 Day Challenge Here -> http://www.cryptotradingchallenge.com

🏆 Want to copy all of my trades? - Get a 14 Day Trial for $7: https://www.signalprofits.com/trading
check this out Jacob...weekly RSI can show the path
Reply
gotta LOVE those love triangles
Reply
Nice analysis. Keep up the good job
Reply
PSA: Fractals never work
+1 Reply
Good job. I want to remind Eliott a good man, but Fibonacci said that all the laws in the universe are subordinate to numbers. What do you think?
Reply

need to break 10700 if it up or otherwise we face downfall
Reply
Thank you for your posts, very educational.
Reply
great work
my short term view
what do you think?
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing TradingView Coins My Support Tickets Get Help Ideas Published Followers Following Private Messages Chat Sign Out