Bitcoin $550: The Maginot Line?
Recently there has been quite a bit of analysis of the Bitcoin price and support in the $550 to $560 or so range. While on the one hand, there indeed has been some support there, I'm wondering if that level hasn't transformed into the equivalent of the Maginot Line (en.wikipedia.org/wiki/Maginot_Line) - something that appears to be a strong line, when in fact it may not be.
This chart consists of the following elements:
1. A large green symmetrical triangle;
2. A blue triangle;
3. A black symmetrical triangle;
4. An Andrews' Pitchfork;
5. Several black horizontal support/resistance lines
First off, to be clear, the symmetrical triangles presented on this chart aren't meant to be ideal examples that can be traded off of such as could be found on Bulkowski's The Pattern Site (Recently there has been quite a bit of analysis of the Bitcoin price and support in the $550 to $560 or so range. While on the one hand, there indeed has been some support there, I'm wondering if that level hasn't transformed into the equivalent of the Maginot Line (en.wikipedia.org/wiki/Maginot_Line) - something that appears to be a strong line, when in fact it may not be.
This chart consists of the following elements:
1. A large green symmetrical triangle;
2. A blue triangle;
3. A black symmetrical triangle;
4. An Andrews' Pitchfork;
5. Several black horizontal support/resistance lines
First off, these symmetrical triangle aren't meant to be ideal ones that can be traded off of such as would appear on Bulkowski's The Pattern Site (thepatternsite.com/st.html).
Instead they are used to look at the price direction and to try and determine through questioning, logic and reason which direction price might head, and whether it is more reasonable to expect that price will break higher through resistance, or break down lower through support...or perhaps neither.
So, if we first look at the large green symmetrical triangle you'll notice that price has spent a good deal of time within the pattern below the $683.26 level. That price has proven difficult to rise above, presenting pretty significant resistance back in March and again in June.
Next we'll look at the blue triangle. It is formed by the price trigger of the Andrews' Pitchfork and a support line. It is notable in that price currently rests at or on support and in its failure to breach the top of the triangle after several attempts.
(See part two here: www.tradingview.com/v/MrSObF4V/)
Recently there has been quite a bit of analysis of the Bitcoin price and support in the $550 to $560 or so range. While on the one hand, there indeed has been some support there, I'm wondering if that level hasn't transformed into the equivalent of the Maginot Line (en.wikipedia.org/wiki/Maginot_Line) - something that appears to be a strong line, when in fact it may not be.
This chart consists of the following elements:
1. A large green symmetrical triangle;
2. A blue triangle;
3. A black symmetrical triangle;
4. An Andrews' Pitchfork;
5. Several black horizontal support/resistance lines
First off, to be clear, the symmetrical triangles presented on this chart aren't meant to be ideal examples that can be traded off of such as could be found on Bulkowski's The Pattern Site (Recently there has been quite a bit of analysis of the Bitcoin price and support in the $550 to $560 or so range. While on the one hand, there indeed has been some support there, I'm wondering if that level hasn't transformed into the equivalent of the Maginot Line (en.wikipedia.org/wiki/Maginot_Line) - something that appears to be a strong line, when in fact it may not be.
This chart consists of the following elements:
1. A large green symmetrical triangle;
2. A blue triangle;
3. A black symmetrical triangle;
4. An Andrews' Pitchfork;
5. Several black horizontal support/resistance lines
First off, these symmetrical triangle aren't meant to be ideal ones that can be traded off of such as would appear on Bulkowski's The Pattern Site (thepatternsite.com/st.html).
Instead they are used to look at the price direction and to try and determine through questioning, logic and reason which direction price might head, and whether it is more reasonable to expect that price will break higher through resistance, or break down lower through support...or perhaps neither.
So, if we first look at the large green symmetrical triangle you'll notice that price has spent a good deal of time within the pattern below the $683.26 level. That price has proven difficult to rise above, presenting pretty significant resistance back in March and again in June.
Next we'll look at the blue triangle. It is formed by the price trigger of the Andrews' Pitchfork and a support line. It is notable in that price currently rests at or on support and in its failure to breach the top of the triangle after several attempts.
(See part two here: www.tradingview.com/v/MrSObF4V/)
