Bitcoin has been very volatile lately after the parabolic rise made a stop. 4H is trading on an Inverse Head and Shoulders pattern and its neckline has just been marginally crossed. This is an early bearish signal as it brings BTC face to face with a pivotal Support, the 7600 level. This is were many major Support levels cross paths creating a strong Support...
Pattern: 1D Head and Shoulders. Signal: Bullish as the price has touched the Support of the neckline. Potential rebound towards the Resistance but tight trade due to the bearish momentum. Target: 870.00 (top of the neckline and symmetrical Resistance).
Pattern: Upside break out from a Channel Down on 1D. Signal: Bullish as break outs on the previous Channel formation resulted into a reversal. Targets: 125.000 (0.618 Fibonacci retracement) and 126.800 (full retracement as the previous break outs resulted into).
I don't want to go into much detail on this one. This is just the current volatile price action explained by the assumption that Bitcoin is trading on a symmetrical pattern. The July 2018 - December 2018 price action is close enough to be an inverse formation of the December 2018 - today formation. Their distance from High - Bottom is identical (144 as opposed to...
Pattern: Channel Down on 4H. Signal: Bearish as the price was rejected near the Lower High zone. Target: 1.11190 (just above the Support Zone).
This is just a quick update on BTC's current stress zones. The outlook after Friday's sell off is a High Volatility zone within 6855 - 7455 where the price is currently consolidating. A high volume break above or below this zone will set the direction for the next 48 hours. Notice how the supply channel started on April 25th has provided support so far on more...
The markers were there regarding the importance of this first strong Resistance and gave hints on how to trade it: You were also informed of how parabolas tend to behave during bull cycles: So now that we have established that trading Bitcoin based on its historic price action isn't all that bad we can start drawing some more meaningful conclusions....
Pattern: Rectangle on 1H. Signal: Bullish on the Support, Bearish on the Resistance (scalping). Target: Short TP 12.4600, Long TP 12.5800.
Pattern: Channel Down on 1D. Signal: Bearish as long as the Lower High sequence holds. Target: 14.400 and if the price bounces back to the resistance then aim at 14.250.
Pattern: Bearish reversal candle pattern on a 1D Lower High sequence. Signal: Bearish after three straight bearish 1D candles printed. Target: 1270 (just above the 1D Support).
On this analysis I compare Bitcoin's two most recent cycles: the 2014 - 2016 and the current one 2018 - 2019. What stands out is that even though they both followed the same trend line (i.e. after the peak the bear market followed, a bottom was made on the parabolic curve and then the new bull cycle gradually started), they tend to diverge at some parts, only to...
Pattern: Structured rise supported by supported by channeled Higher Low levels. Signal: Bullish once the new Higher Low Support is tested. Target: 2.80000.
Pattern: Channel Up on 1W. Signal: Bullish (1) on the next pull back towards the High Volatility Zone and (2) if the Higher Low trend line of the Channel Up breaks. Target: (1) 0.4800 (2) 0.8000.
Pattern: Rectangle on 1D. Signal: Bearish after the price was rejected on the 8.7200 Resistance. Target: 8.5300 (the immediate 1D Support).
Pattern: Channel Down on 1D. Signal: Bearish as the price made a new Lower High. Target: 16.320 (next potential Support).
Much is being discussed over Bitcoin's recent hyper aggressive rise. It is beyond any reasonable doubt that it is a strong confirmation that the new Bull Market has started. Backed by strong fundamentals, this time can be different , more aggressive and unpredictable . It is interesting however to keep in mind how such parabolic movements typically end up. For...
Pattern: Rectangle on 1D. Signal: Bearish after the price was rejected near the 1D Resistance. Target: 11.0575 (top of the 1D Support Zone).
Pattern: Channel Up on 1W. Signal: Bullish as the price rebounded on the Channel's Higher Low. Target: 12600.