Hi friends!
I decided to share with you my misli about the crypto market.
I think you have noticed that there has been a lot of negative news on Bitcoin lately. Does this mean that cryptocurrency is over - of course not.
But against all this background, we can get the scenario that I described in the last posts.
Since May 19, we have been trading in a large channel between the zones of 30,000-42,000$. Since June 22, this channel has shrunk between the zones of 35,000-30,000$.
I will give you a short technical analysis ligbez: the largest purchases or sales are in such channels. In technical language, many call them by different names: protrading,
selling, box, etc. The wider and longer the channel, the longer the movement we will get at the exit from it. Exit from such channels can be along the trend or against the trend.
What happens when the price exits the channel along the trend: with such a movement, it means that there are a large number of buyers or sellers in the market (depending on
the direction of the trend) and when, after a strong movement, some of the market participants fix their profits, but the price does not fall, or does not grow, it means that at the
moment there is a large buyer or seller in the market who holds this price and is ready to lead it further along the trend. How to determine in which direction the price will leave
the channel? If the width of the channel begins to narrow in some direction, then this is a strong indicator for determining the direction of exit from this channel. This can be
explained by the fact that one of the parties begins to prevail over the other and, accordingly, the price of the instrument begins to tighten towards the strongest side (sellers or buyers).
So now let's move on to Bitcoin. After a strong fall from 51,000$, the price met its resistance at 30,000$ and rebounded well. This means that large players were sitting in this zone,
who began to buy out the market and thus kept the price above this zone. After that, for a long time the price has been trading in the channel between 30,000-42,000$, and for
three weeks now we have been trading in a narrower channel of 35,000-30,000$. Based on the above, we have several significant factors to expect a good movement of the bitcoin
price at the exit from the channel below the support level of 30,000$:
1) The price moves along the trend;
2) The width of the channel narrowed towards the price movement along the trend;
3) Each next rebound from the support level of the 30,000$ zone is weaker than the previous one (this means that the mood of the buyers is falling, the sellers begin to dominate.
4) Besides technical analysis, bitcoin news traffic is negative today, which also has a good impact on the market.
Now, many will ask the question in this situation, where can the price of Bitcoin come?
As I described above, the wider and longer our channel, the longer we can get movement at the exit from it. Provided that our scenario is lost and bitcoin continues to fall, then the
price can get its first strong resistance in the region of 20,000$, with a big market panic like in March 2020, at the moment we can even get a lower price.
✔ Do not forget to trade using your own trading system and with stops!
✔ If you like what I do, put 👍 and subscribe! 🙌👀
✔ This is the best gratitude for my work! 💕
I decided to share with you my misli about the crypto market.
I think you have noticed that there has been a lot of negative news on Bitcoin lately. Does this mean that cryptocurrency is over - of course not.
But against all this background, we can get the scenario that I described in the last posts.
Since May 19, we have been trading in a large channel between the zones of 30,000-42,000$. Since June 22, this channel has shrunk between the zones of 35,000-30,000$.
I will give you a short technical analysis ligbez: the largest purchases or sales are in such channels. In technical language, many call them by different names: protrading,
selling, box, etc. The wider and longer the channel, the longer the movement we will get at the exit from it. Exit from such channels can be along the trend or against the trend.
What happens when the price exits the channel along the trend: with such a movement, it means that there are a large number of buyers or sellers in the market (depending on
the direction of the trend) and when, after a strong movement, some of the market participants fix their profits, but the price does not fall, or does not grow, it means that at the
moment there is a large buyer or seller in the market who holds this price and is ready to lead it further along the trend. How to determine in which direction the price will leave
the channel? If the width of the channel begins to narrow in some direction, then this is a strong indicator for determining the direction of exit from this channel. This can be
explained by the fact that one of the parties begins to prevail over the other and, accordingly, the price of the instrument begins to tighten towards the strongest side (sellers or buyers).
So now let's move on to Bitcoin. After a strong fall from 51,000$, the price met its resistance at 30,000$ and rebounded well. This means that large players were sitting in this zone,
who began to buy out the market and thus kept the price above this zone. After that, for a long time the price has been trading in the channel between 30,000-42,000$, and for
three weeks now we have been trading in a narrower channel of 35,000-30,000$. Based on the above, we have several significant factors to expect a good movement of the bitcoin
price at the exit from the channel below the support level of 30,000$:
1) The price moves along the trend;
2) The width of the channel narrowed towards the price movement along the trend;
3) Each next rebound from the support level of the 30,000$ zone is weaker than the previous one (this means that the mood of the buyers is falling, the sellers begin to dominate.
4) Besides technical analysis, bitcoin news traffic is negative today, which also has a good impact on the market.
Now, many will ask the question in this situation, where can the price of Bitcoin come?
As I described above, the wider and longer our channel, the longer we can get movement at the exit from it. Provided that our scenario is lost and bitcoin continues to fall, then the
price can get its first strong resistance in the region of 20,000$, with a big market panic like in March 2020, at the moment we can even get a lower price.
✔ Do not forget to trade using your own trading system and with stops!
✔ If you like what I do, put 👍 and subscribe! 🙌👀
✔ This is the best gratitude for my work! 💕