Hello, Dear subscribers!
The most recent Bitcoin's technical analysis revealed two continuous replications of price action. These fractals are simply described as following:
1. Pump -> downtrend -> pump
2. Dump -> uptrend -> dump
You can check the full picture in the related ideas
But how this should be used to earn profit?
I. Once we spotted a new fractal let's analyze it from the very beginning. At 1H timeframe chart analysis we start from Bitcoin's price pump with 5 Elliot impulse waves. Afterwards a natural decrease started and Cup and Handle pattern was constructed. Unfortunately it was rejected thus we have another confirmed fractal. Rejection started a downtrend in a three drives pattern which formed a parallel channel you can see it at the chart.
II. At this moment we are in a downtrend inside of descending parallel channel. The channel is based on three drives pattern which usually finishes with a breakout from the channel. You can see a callout note at the chart where breakout happened.
The price went back to the channel but the previous patterns finished. We can see that price action has a new support level which is perfectly described with Triangle pattern. Once triangle is defined we can forecast targets using Elliot Triangle waves (ABCDE).
III. At point (E) Triangle was finished thus the price could move ether downward or upward. It is the most dangerous moment to take actions thus you should always wait till the price chooses its way. In this case the price moved up making a breakout and now the technical picture replicate defined fractal pattern. You can see the most recent replication below.
IV. In order to forecast further price action we should draw one more important indicator. Fibonacci retracement levels from the last pump. The price has a very strong support at Fib 0.5 and its action now is far above of this level which means it tends to go higher and currently tests local resistance level of Fib 0.382 around $9 251.
Conclusion:
If the price action manages to break Fib 0.382 around $9 251 we will see a fast and confident growth to Fib 0.236 around $9 691 after a small and natural correction caused by breakout. Stay tuned to receive updates
Best regards,
SkyRock Signals team
The most recent Bitcoin's technical analysis revealed two continuous replications of price action. These fractals are simply described as following:
1. Pump -> downtrend -> pump
2. Dump -> uptrend -> dump
You can check the full picture in the related ideas
But how this should be used to earn profit?
I. Once we spotted a new fractal let's analyze it from the very beginning. At 1H timeframe chart analysis we start from Bitcoin's price pump with 5 Elliot impulse waves. Afterwards a natural decrease started and Cup and Handle pattern was constructed. Unfortunately it was rejected thus we have another confirmed fractal. Rejection started a downtrend in a three drives pattern which formed a parallel channel you can see it at the chart.
II. At this moment we are in a downtrend inside of descending parallel channel. The channel is based on three drives pattern which usually finishes with a breakout from the channel. You can see a callout note at the chart where breakout happened.
The price went back to the channel but the previous patterns finished. We can see that price action has a new support level which is perfectly described with Triangle pattern. Once triangle is defined we can forecast targets using Elliot Triangle waves (ABCDE).
III. At point (E) Triangle was finished thus the price could move ether downward or upward. It is the most dangerous moment to take actions thus you should always wait till the price chooses its way. In this case the price moved up making a breakout and now the technical picture replicate defined fractal pattern. You can see the most recent replication below.
IV. In order to forecast further price action we should draw one more important indicator. Fibonacci retracement levels from the last pump. The price has a very strong support at Fib 0.5 and its action now is far above of this level which means it tends to go higher and currently tests local resistance level of Fib 0.382 around $9 251.
Conclusion:
If the price action manages to break Fib 0.382 around $9 251 we will see a fast and confident growth to Fib 0.236 around $9 691 after a small and natural correction caused by breakout. Stay tuned to receive updates
Best regards,
SkyRock Signals team
Trade active:
The price action will reach $10 000 level but first of all we should receive a confirmation. To enter long position the price should break and consolidate above $9 251
Trade active:
Bitcoin has broke through Fib 0.382 a bit longer than it was expected but precisely and confidently. Price action is above $9 251 level that was mentioned in the analysis.
What does it mean?
Our analysis is in power now and we expect a testing of $9 691 level with subsequent natural correction before the price action can test $10 000 level again
What does it mean?
Our analysis is in power now and we expect a testing of $9 691 level with subsequent natural correction before the price action can test $10 000 level again
Trade active:
Cryptocurrency market capitalization has been falling since July 2019. It decreased by nearly 40% reaching the $227 bln. point today and continues to decrease. Due to capital outflow alt coins market as well as Bitcoin decrease in value. Do not panic because it is natural and normal for each market to be cyclical. Cryptocurrency is in consolidation and correction phase according to market cycle theory. Even at a decrease phase we can still earn profit using short positions and finding local bottoms of assets' value to scalp price action waves.
Currently we can see a good entry at XBTUSD position. Price is at Fibonacci 0.786 level and is ready for a bounce according to RSI index and DMI. These are important indicators but we can not take decisions using only them. The more important factor is that 10 previous 4H trade candles closed below opening value making a red progression which was broken with the last bar. It closed above opening value making an impulse right from the intersection area and support trend line edge. Analyzing retrospective of price action at 12H timeframe chart we see that currently Bitcoin replicates its movement from 7th of November till 10th of November. Moreover Bitcoin replicated similar pattern at each critical area starting from $14 000 level.
Combining each factor together we see a high probability of growth to $8 450 area within the next 3 days. Afterwards there should be a $7 700 - $7 900 range retest.
Currently we can see a good entry at XBTUSD position. Price is at Fibonacci 0.786 level and is ready for a bounce according to RSI index and DMI. These are important indicators but we can not take decisions using only them. The more important factor is that 10 previous 4H trade candles closed below opening value making a red progression which was broken with the last bar. It closed above opening value making an impulse right from the intersection area and support trend line edge. Analyzing retrospective of price action at 12H timeframe chart we see that currently Bitcoin replicates its movement from 7th of November till 10th of November. Moreover Bitcoin replicated similar pattern at each critical area starting from $14 000 level.
Combining each factor together we see a high probability of growth to $8 450 area within the next 3 days. Afterwards there should be a $7 700 - $7 900 range retest.
Trade closed: target reached:
Today our short term Bitcoin price action analysis has reached its target. The forecasted duration was 3 days and now it can be seen that it was very accurate.
The last update was made when analysis came to action with BTC moving up until $8 239 where we fixed leveraged profit. unfortunately the impulse was weak due to decreasing capitalization and trade volume.
The second forecasted step was a sharp decrease to $7 700 level. You can see at the chart when price action broke down Fib 0.786 level Bitcoin's value droped sharply reaching our short position target. Price has successfully bounced from Fib 1 level which was announced in the previous analysis.
Stay tuned soon we are going to do the next forecast. More info in Premium channel
Best regards,
SkyRock Signals team
The last update was made when analysis came to action with BTC moving up until $8 239 where we fixed leveraged profit. unfortunately the impulse was weak due to decreasing capitalization and trade volume.
The second forecasted step was a sharp decrease to $7 700 level. You can see at the chart when price action broke down Fib 0.786 level Bitcoin's value droped sharply reaching our short position target. Price has successfully bounced from Fib 1 level which was announced in the previous analysis.
Stay tuned soon we are going to do the next forecast. More info in Premium channel
Best regards,
SkyRock Signals team
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