Hi,
On the Monthly, we have two Shooting Star candlestick patterns, bearish indications.
On the Weekly, we have three bearish Weekly candles in the row. In previous years it has been the maximum amount of bearish Weekly candles in the row. Last time when we got four in a row was August 2016.
So, already two biggest timeframes give us few mixed signs. Can those two bearish candlestick patterns, from the Monthly timeframe , drive the Bitcoin price into the fourth bearish week?
The answer: I don't know and actually I don't care. For me, as a short-term trader, the most important movements are the short-term movements and the current bearish Monthly candlestick pattern just gives me confirmations if I see short-term high probability "shorting" area ... and at the moment I see it.
I cannot say a high probability because I don't like the price action, it is a bit calm, but the criteria count is pretty high and it can easily work out very nicely. Definitely, this area is good and strong enough to take out short-term long positions!
The resistance and a possible short-term reversal area consist of:
1. The psychological number $10,000 should act as a resistance
2. The price levels around 10k worked nicely as support levels in August. Now, these levels should start to work as resistance levels - a classical role reversal.
3. The black down-trendline(s), pulled from 6. August high, acts as resistance levels.
4. After the break below the blue trendline (pulled from the wicks) it starts to work as a resistance - a classical retest situation.
5. Fibonacci retracement 38% and 62% levels are in this marked red area.
6. The short-term orange parallel channel upper trendline should work as a resistance which is also a possible Bear Flag . A possible, because chart patterns are valid after the breakout. At the moment the price moves between those two orange lines and we haven't seen any breakout, yet.
7. Short-term AB=CD and the D point is inside the red area.
8. 4H 50EMA should act as a resistance and the same goes for 1H EMA100
9. We have mid-term lower highs and short-term lower highs and lower lows. So, the trade should be to the overall down direction.
10. Previously mentioned bearish candlestick patterns from the Monthly should support that current area with a bearish bias.
11*. If possible, wait for bearish candlestick formations from the marked red area!
As said, a pretty high count of reversal criteria. They make the marked red resistance area pretty strong. For shorts, wait for a bearish candlestick formation. For long holders, consider to take out some short-term profits because the resistance is capable to produce reversals.
Something bothers me with this area, I don't know what it is but definitely I'll wait for a bearish candlestick pattern to make any actions.
Please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Do your own research and if this matching with mine then you are ready to go!
Good luck,
On the Monthly, we have two Shooting Star candlestick patterns, bearish indications.
On the Weekly, we have three bearish Weekly candles in the row. In previous years it has been the maximum amount of bearish Weekly candles in the row. Last time when we got four in a row was August 2016.
So, already two biggest timeframes give us few mixed signs. Can those two bearish candlestick patterns, from the Monthly timeframe , drive the Bitcoin price into the fourth bearish week?
The answer: I don't know and actually I don't care. For me, as a short-term trader, the most important movements are the short-term movements and the current bearish Monthly candlestick pattern just gives me confirmations if I see short-term high probability "shorting" area ... and at the moment I see it.
I cannot say a high probability because I don't like the price action, it is a bit calm, but the criteria count is pretty high and it can easily work out very nicely. Definitely, this area is good and strong enough to take out short-term long positions!
The resistance and a possible short-term reversal area consist of:
1. The psychological number $10,000 should act as a resistance
2. The price levels around 10k worked nicely as support levels in August. Now, these levels should start to work as resistance levels - a classical role reversal.
3. The black down-trendline(s), pulled from 6. August high, acts as resistance levels.
4. After the break below the blue trendline (pulled from the wicks) it starts to work as a resistance - a classical retest situation.
5. Fibonacci retracement 38% and 62% levels are in this marked red area.
6. The short-term orange parallel channel upper trendline should work as a resistance which is also a possible Bear Flag . A possible, because chart patterns are valid after the breakout. At the moment the price moves between those two orange lines and we haven't seen any breakout, yet.
7. Short-term AB=CD and the D point is inside the red area.
8. 4H 50EMA should act as a resistance and the same goes for 1H EMA100
9. We have mid-term lower highs and short-term lower highs and lower lows. So, the trade should be to the overall down direction.
10. Previously mentioned bearish candlestick patterns from the Monthly should support that current area with a bearish bias.
11*. If possible, wait for bearish candlestick formations from the marked red area!
As said, a pretty high count of reversal criteria. They make the marked red resistance area pretty strong. For shorts, wait for a bearish candlestick formation. For long holders, consider to take out some short-term profits because the resistance is capable to produce reversals.
Something bothers me with this area, I don't know what it is but definitely I'll wait for a bearish candlestick pattern to make any actions.
Please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Do your own research and if this matching with mine then you are ready to go!
Good luck,