Hello All! Welcome back with me in this another bitcoin analysis. First of all, I want you to look at my previous analysis about shadow support on bitcoin in this article
which is holding true. We have seen a spike to test the previous broken support that is now become resistance.
On this chart, we will cover the mid term view of the bitcoin's movement. First of all, I want to repeat again the knowledge of the break out strategy that I am using. So, here it is :
1. Initial Break Out : is the initial try of the price to surpass the support or resistance and on the higher time frame, we see it close just out of the current range.
2. Retesting the previous broken level : Just like the basic terminology, what ever that goes up, it will retrace to find another point of interest. In this case usually we see a pull back after the broken out of the previous support or resistance. Usually we saw a rejection toward this previous s/r and this will be our ideal entry for longing or shorting.
3. The real Break out : Price will start its rally after the phase 2 get a clear confirmation.
Therefore, I see in the mid term, there might be a potential reverse in price to the blue resistance trend line. because since the initial break out of this resistance trend line, we haven't seen any test toward this previous resistance that is now become support. And within this terminology, I personally very interested in looking for the fibonacci level to determine which will be the candidate for support level. I see these 2 levels, which has confluence zone with the resistance trend line. They are the golden pocket around $8500 and the 78.6 fib retracement around $8000. However, this 2 levels of support was previously become a price range since September 25th until October 20th.
Although there are a lot of bearish bias that occuring in the market, I am still hoping that the $8000 can hold the price from further drop. Drop from current level will cause the chance of the price hit the $6000 or lower will getting bigger.
On this chart, we will cover the mid term view of the bitcoin's movement. First of all, I want to repeat again the knowledge of the break out strategy that I am using. So, here it is :
1. Initial Break Out : is the initial try of the price to surpass the support or resistance and on the higher time frame, we see it close just out of the current range.
2. Retesting the previous broken level : Just like the basic terminology, what ever that goes up, it will retrace to find another point of interest. In this case usually we see a pull back after the broken out of the previous support or resistance. Usually we saw a rejection toward this previous s/r and this will be our ideal entry for longing or shorting.
3. The real Break out : Price will start its rally after the phase 2 get a clear confirmation.
Therefore, I see in the mid term, there might be a potential reverse in price to the blue resistance trend line. because since the initial break out of this resistance trend line, we haven't seen any test toward this previous resistance that is now become support. And within this terminology, I personally very interested in looking for the fibonacci level to determine which will be the candidate for support level. I see these 2 levels, which has confluence zone with the resistance trend line. They are the golden pocket around $8500 and the 78.6 fib retracement around $8000. However, this 2 levels of support was previously become a price range since September 25th until October 20th.
Although there are a lot of bearish bias that occuring in the market, I am still hoping that the $8000 can hold the price from further drop. Drop from current level will cause the chance of the price hit the $6000 or lower will getting bigger.
