Situation:
Bitcoin has seen over one week of consolidation. The 10.2k/10.3k range has shown to be as important as previously mentioned, because that's the region, which directs the price. Staying above 10.3k means bullish. With decent SL management really good trades can be made. We have a lot of trend line resistance at this mark (not drawn in). What normally happens when we break such crucial resistance levels is a big pump. Volatile pumps are the consequence of braking major resistance in most cases.
Fear and Greed Index:
The Fear and Greed Index is an index, which measures the overall mood of the investors. A lot of fear is a sign of a really likely bottom and a lot of greed is the sign of a possible top.
The scale goes from 0 to 100, with 100 standing for extreme greed and 0 standing for extreme fear.
Currently we are at 5, which means extreme fear. We haven't seen such a low level since February 1st 2018 until today. When I but this number into relation with the drop from 20k to 6k, we are at an almost identical level.
This fear is a really good indicator for a possible bottom, this would actually work with many additional factors.
For example: the strength of the "support line of hope". It has supported Bitcoin longterm and we have only dipped a view times below it, which got directly bought back.
-> Strength of silent bulls
-> Really strong support
Bullish case:
We hold the support line of hope and break 10.3k and additionally don't make a lower low to sustain a small parabola forming.
Breaking 10.3k will lead us to 11k and this will create an ascending triangle. Breaking 11k will lead us to 12k+, more precise 12.5k.
This will create even more bullish patterns and bring us to 16k, after breaking the tremendously big bull flag.
Bearish case:
10.3k don't break, causing us to drop lower. If the support line
of hope breaks, we will experience a big drop, because a lot of pressure will be released. Targets go sub 8k.
A break of 9.8k would be required to confirm those bearish targets.
Trades:
Go long after 10.3k break.
Add longs and take profit from shorts around 9.8k. SL for longs : $9700
As long as 10.3k we have no information to be bullish, meaning you can stay short as long as this mark holds.
TP longs and possible short entries at:
$10550
$10750
$11000
targets confirmed after break of $9.8k
TP from shorts at:
$9500
$9300
$9000
Bitcoin has seen over one week of consolidation. The 10.2k/10.3k range has shown to be as important as previously mentioned, because that's the region, which directs the price. Staying above 10.3k means bullish. With decent SL management really good trades can be made. We have a lot of trend line resistance at this mark (not drawn in). What normally happens when we break such crucial resistance levels is a big pump. Volatile pumps are the consequence of braking major resistance in most cases.
Fear and Greed Index:
The Fear and Greed Index is an index, which measures the overall mood of the investors. A lot of fear is a sign of a really likely bottom and a lot of greed is the sign of a possible top.
The scale goes from 0 to 100, with 100 standing for extreme greed and 0 standing for extreme fear.
Currently we are at 5, which means extreme fear. We haven't seen such a low level since February 1st 2018 until today. When I but this number into relation with the drop from 20k to 6k, we are at an almost identical level.
This fear is a really good indicator for a possible bottom, this would actually work with many additional factors.
For example: the strength of the "support line of hope". It has supported Bitcoin longterm and we have only dipped a view times below it, which got directly bought back.
-> Strength of silent bulls
-> Really strong support
Bullish case:
We hold the support line of hope and break 10.3k and additionally don't make a lower low to sustain a small parabola forming.
Breaking 10.3k will lead us to 11k and this will create an ascending triangle. Breaking 11k will lead us to 12k+, more precise 12.5k.
This will create even more bullish patterns and bring us to 16k, after breaking the tremendously big bull flag.
Bearish case:
10.3k don't break, causing us to drop lower. If the support line
of hope breaks, we will experience a big drop, because a lot of pressure will be released. Targets go sub 8k.
A break of 9.8k would be required to confirm those bearish targets.
Trades:
Go long after 10.3k break.
Add longs and take profit from shorts around 9.8k. SL for longs : $9700
As long as 10.3k we have no information to be bullish, meaning you can stay short as long as this mark holds.
TP longs and possible short entries at:
$10550
$10750
$11000
targets confirmed after break of $9.8k
TP from shorts at:
$9500
$9300
$9000
