Weekend Update For The Weak Hands :)
Let's look at pure price delivery.
Legend:
- Blue lines are Monthly, Weekly and Daily highs.
- Red lines are Monthly, Weekly and Daily lows.
- The thinner the lower timeframe
- Green lines are supply downtrend from different highs.
Resistances:
1- $35.750 is the old weekly high as the first strong resistance
2- $36.600 is the highest daily breach of the old weekly high, possible breakout point
3- 50 period MA will be at $36.573 on Sunday coupled with the old weekly high
4- $39.380 is the prievious weekly high as the second strong resistance
5- $41.330 is June High, standing as the strongest resistance
Analysis:
Price will always move towards liquidation as this is the job of market makers, so whenever a new trend starts, we see a move in the opposite direction in order to liquidate weak hands.
This has just happened and weak hands who shorted below $33k yesterday are now in FOMO mode and will buy back just to get slashed. Given the strong resistances ahead, we need to see a very strong upward price action to clear these levels in order to turn bullish. Right now, there's a short term move up that has already started to meet these resistances and it's far from being a strong breakout.
If you want to trade in sideways markets, use the old monthly, weekly and daily highs / lows as resistanance and support levels BUT, understand that these levels will be reached AND breached in order to liquidate weak hands.
Don't be one of them.
Trade Safe!
Legend:
- Blue lines are Monthly, Weekly and Daily highs.
- Red lines are Monthly, Weekly and Daily lows.
- The thinner the lower timeframe
- Green lines are supply downtrend from different highs.
Resistances:
1- $35.750 is the old weekly high as the first strong resistance
2- $36.600 is the highest daily breach of the old weekly high, possible breakout point
3- 50 period MA will be at $36.573 on Sunday coupled with the old weekly high
4- $39.380 is the prievious weekly high as the second strong resistance
5- $41.330 is June High, standing as the strongest resistance
Analysis:
Price will always move towards liquidation as this is the job of market makers, so whenever a new trend starts, we see a move in the opposite direction in order to liquidate weak hands.
This has just happened and weak hands who shorted below $33k yesterday are now in FOMO mode and will buy back just to get slashed. Given the strong resistances ahead, we need to see a very strong upward price action to clear these levels in order to turn bullish. Right now, there's a short term move up that has already started to meet these resistances and it's far from being a strong breakout.
If you want to trade in sideways markets, use the old monthly, weekly and daily highs / lows as resistanance and support levels BUT, understand that these levels will be reached AND breached in order to liquidate weak hands.
Don't be one of them.
Trade Safe!
Comment:
Sunday update, let's review the uptrend!
Comment:
Who's selling (or buying)
Comment:
Let's zoom out and look at the big picture.
Comment:
Looks like 16k is playing out
