BTC is on an upward trend channel since start of March 2019 and current price is situated at the bottom of the trend channel. On top of that, notice the circles I have drawn, they are supports at the same price level and coincides with the trend channel's bottom. Retail traders will be buying at this point but the opposite is exact what I will be doing, especially when I have a good level just below (Buy Level 1). For those who learn Supply and Demand you should be able to identify this quite easily.
The next 2 levels of Demand are plotted in as well to show the potential trajectory of future price. Now talk about the 2 Harmonics patterns - Bullish Butterfly and Bearish Bat.
Potential Bullish Butterfly just completed its Point C and from Point C to Point D I see huge profit potential, which forms the backbone of this whole trade analysis. What if I am wrong and price go higher from this point? I identified a Bearish Bat higher up in the trend channel for a shorting opportunity which still points out that price is overall down looking forward.
Lastly, RSI showing divergence gave me that added boost in confidence that BTC is bearish. In conclusion, small targets for long positions and swing trades for bigger profit targets on short positions.
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The next 2 levels of Demand are plotted in as well to show the potential trajectory of future price. Now talk about the 2 Harmonics patterns - Bullish Butterfly and Bearish Bat.
Potential Bullish Butterfly just completed its Point C and from Point C to Point D I see huge profit potential, which forms the backbone of this whole trade analysis. What if I am wrong and price go higher from this point? I identified a Bearish Bat higher up in the trend channel for a shorting opportunity which still points out that price is overall down looking forward.
Lastly, RSI showing divergence gave me that added boost in confidence that BTC is bearish. In conclusion, small targets for long positions and swing trades for bigger profit targets on short positions.
Do like, share and follow us for more analysis like this regularly.
Comment:
As expected of price, it broke out of the trend channel and headed towards Buy Level 1 and halted there.
Comment:
Price reacted at Buy level 1 and formed higher high and eventually completed the Bearish Bat pattern and took a turn there. Skeptics may accuse that Harmonics pattern does not work, I am not so bothered as I know what we are doing using these Technical Analysis methods. It is always about application and not just theory.
As long as Point X is not broken, I am not convince that BTCUSD is going to go higher.
Price reacted at Buy level 1 and formed higher high and eventually completed the Bearish Bat pattern and took a turn there. Skeptics may accuse that Harmonics pattern does not work, I am not so bothered as I know what we are doing using these Technical Analysis methods. It is always about application and not just theory.
As long as Point X is not broken, I am not convince that BTCUSD is going to go higher.