Hello traders,
If you recall from my previous analysis, I mentioned that retest of $3700 is necessary before the next leg up, and finally we saw minor dip last night.
Looking at the 4 hour chart, we see that Bitcoin is trying to find support at $3700 and this is where 4-hourly 200 moving average is located. This bearish breakout was not as strong as I expected as the volume is much lower compared to other bearish breakouts, which suggests that bears are starting to get exhausted. I am actually not surprised by this because bear tried to drive the price down multiple times and bulls bought those dip every time. However, this dip was necessary because we just needed to solidify $3700 as strong support and one dragonfly doji just is not enough to confirm that $3700 is support. So where are we going from here:
1) I expect another few days of sideway movement. I see a lot of people are frustrated of sideway movement, but you have to understand that longer the sideway movement, the strong support/resistance will be. The 7 days of sideway movement was actually a really good thing if we see another leg down to $4000 because we know $3800 would act as strong support. If MACD can curl upward in next 24 hours, we will have bullish divergence, and I will enter long position from this point on.
2) In case $3700 range is breached, the next support is somewhere around $3550 where we see confluent layer of support and where ascending black trendline meets. At the moment, I give low probability of this scenario because the market sentiment is desperate for another bullish breakout, and most of the bearish sentiment disappeared when Bitcoin found support at $3700.
Happy trading!
If you recall from my previous analysis, I mentioned that retest of $3700 is necessary before the next leg up, and finally we saw minor dip last night.
Looking at the 4 hour chart, we see that Bitcoin is trying to find support at $3700 and this is where 4-hourly 200 moving average is located. This bearish breakout was not as strong as I expected as the volume is much lower compared to other bearish breakouts, which suggests that bears are starting to get exhausted. I am actually not surprised by this because bear tried to drive the price down multiple times and bulls bought those dip every time. However, this dip was necessary because we just needed to solidify $3700 as strong support and one dragonfly doji just is not enough to confirm that $3700 is support. So where are we going from here:
1) I expect another few days of sideway movement. I see a lot of people are frustrated of sideway movement, but you have to understand that longer the sideway movement, the strong support/resistance will be. The 7 days of sideway movement was actually a really good thing if we see another leg down to $4000 because we know $3800 would act as strong support. If MACD can curl upward in next 24 hours, we will have bullish divergence, and I will enter long position from this point on.
2) In case $3700 range is breached, the next support is somewhere around $3550 where we see confluent layer of support and where ascending black trendline meets. At the moment, I give low probability of this scenario because the market sentiment is desperate for another bullish breakout, and most of the bearish sentiment disappeared when Bitcoin found support at $3700.
Happy trading!
Comment:
We may see another minor price drop in Bitcoin down to $3650. There is still no bullish entry signal yet. We need to see bullish divergence in both RSI and MACD.
Comment:
Very nice bounce :)
We will probably see side way movement into bull flag play, because the target for the potential bull flag is $4000
We will probably see side way movement into bull flag play, because the target for the potential bull flag is $4000
Comment:
Sold some portions around 3870. We need to test orange circle region again in order to confirm that this bullish run is not over:
Trade closed: target reached:
Entered orange zone and there is a decent bounce :) Still looks bullish to me!
Comment:
Bitcoin is looking to breakout from the bull flag. The target for tthis bull flag is around $4000 where we see psychological resistance. Most likely this will happen before Friday so we can get some healthy retracement during the weekend.
New analysis later today.
New analysis later today.
Comment:
Comment:
Be very careful guys. I am starting to have bearish view. This rising wedge that we are seeing is not a bullish sign. Whoever bought in this wedge is hoping for bullish breakout, hence we see gradual uptrend, but this is a very good opportunity for bear to liquidate all of those bulls. Remember longer the accumulation, the larger the liquidation. I am looking at the support around $3830. All the big caps, LTC, BNB needs to cool off the RSI.
Comment:
Absolutely heinous move :)
I warned you guys that this is the bearish pattern
I warned you guys that this is the bearish pattern
