The battle between bulls and bears on this crucial level is still going on. Stocks are losing value, currencies are dropping, cryptocurrencies are falling and even at the outside of my home, the temperatures are sinking. It is very cold this morning: -8°C! Brrrrr.
At least, Bitcoin crossed that important brown dashed bearish trendline yesterday and it fluctuates above that important trendline today. Does it mean Bitcoin is bullish now? Since February 11, 2018, BTCUSD is in an uptrend with higher highs and higher lows. This seems to confirm a bullish scenario.
Let us have a look at the Pivot Point system. Pivot Point is at 8657. The price of Bitcoin is undecided and fluctuating around Pivot Point. I expect the blue dotted trendline to provide enough support for driving BCTUSD up to the resistance R1 level at 9245. There will be a test of this R1 level. It is very likely that the price of Bitcoin will bounce on this level and resume its journey towards South. There is just not enough momentum for breaking this strong resistance R1 level.
At least, Bitcoin crossed that important brown dashed bearish trendline yesterday and it fluctuates above that important trendline today. Does it mean Bitcoin is bullish now? Since February 11, 2018, BTCUSD is in an uptrend with higher highs and higher lows. This seems to confirm a bullish scenario.
Let us have a look at the Pivot Point system. Pivot Point is at 8657. The price of Bitcoin is undecided and fluctuating around Pivot Point. I expect the blue dotted trendline to provide enough support for driving BCTUSD up to the resistance R1 level at 9245. There will be a test of this R1 level. It is very likely that the price of Bitcoin will bounce on this level and resume its journey towards South. There is just not enough momentum for breaking this strong resistance R1 level.
Comment:
At level B, a pattern develops that is similar to the pattern on level A. We may see a further, but slower down move above the brown dashed trendline.
Comment:
There is not even enough momentum for reaching that R1 level. BTCUSD is already dropping towards another test of the brown dashed trendline.
Comment:
In the 30 minutes chart, a HSH formed with a target 8049. Breaking the brown dashed trendline together with support S1 level may be hard and take some time. However, I guess that the downmove is powerful enough for reaching its target.
Comment:
BTCUSD is testing the blue dotted trendline right now. Later in the day, it will move down and test support S1 and the brown dashed trendline. It will probably be able to break support S1, but not the brown dashed trendline. Its further decline will be slower and above the brown dashed trendline.
Comment:
A rising wedge (violet triangle) is developing on the 30 minutes chart, which is a clear bearish signal. BTCUSD will reach its target at 8049.
Comment:
Things changed fundamentally. Two strong bearish patterns developed yesterday.
1. SHS
2. Rising wedge
However, despite the strengh of both patterns, the price of Bitcoin did not reach its target. The contrary is the case. BTCUSD created on the 30 minutes chart higher highs and higher lows, a clear sign of an uptrend.
Compared to the time span from December 17, 2017 until now, when the upmoves never reached their target, this is exactly the opposite right now.
Because SHS fail to signal the right direction in rare cases, Investopedia recommends to set a stop loss above the right shoulder of an SHS. www.investopedia.com...y/charts/charts2.asp
Chart with the bearish signals that did not work.
1. SHS
2. Rising wedge
However, despite the strengh of both patterns, the price of Bitcoin did not reach its target. The contrary is the case. BTCUSD created on the 30 minutes chart higher highs and higher lows, a clear sign of an uptrend.
Compared to the time span from December 17, 2017 until now, when the upmoves never reached their target, this is exactly the opposite right now.
Because SHS fail to signal the right direction in rare cases, Investopedia recommends to set a stop loss above the right shoulder of an SHS. www.investopedia.com...y/charts/charts2.asp
Chart with the bearish signals that did not work.