BITCOIN | Technically a Strong Area To BUY It.
Hi,
I have waited for a further price action after "tiny" bounce upwards. Movements have stayed stable and it allows us to determine technically some important areas for further movements.
In general, BTC price and the overall price action are not at the best price levels to make precise predictions but still, we have something to start with.
Let's start from the beginning and let's start from the most important - Bitcoin price has made a breakout above the powerful down-trendline. As I have said several times, this trendline from 2019 has worked perfectly as a resistance. After a couple of failed attempts to break above it has finally been successful. The recent pump guided the price above the down-trendline, which is also called a counter-trendline and we can call it also "Bull Flag"/"Falling Wedge".Let's talk a bit more about them:
*Counter-trendline - multiple times mentioned in my posts. The recent long-term trend has been upwards, from $3128 to ~$14,000. Since it made the $14,000 high, the overall bullish sentiment has been low. Mid-term lower lows, mid-term lower highs, and this movement printed the mentioned trendline. It called counter-trendline because it is against the bigger trend, simple. Now, the price managed to crack it and theoretically, the long-term upwards movements may continue. Sound simple, right!? but it isn't.
*Bull Flag/Falling Wedge - to mix it up even more to the bullish side, then more than a month ago (26. of September, you can see it below of this post "Related ideas") I posted a possible movement and a breakout from the massive bullish chart pattern called "Bull Flag":
Actually, pretty creepy to watch it because those movements have been pretty similar compared with my drawings about a month ago. At the moment, it looks more like another bullish chart pattern called "Falling Wedge" but the idea remains the same - bullish. So, as I said at 26. of September: "I change my mid-, long-term bearish bias when the price has made a breakout above the upper trendline". It has made it and I will start to look where I can enter into the next possible waves upwards. My eyes are pointed to $8,450 - $8,800.
Strong Price Level Criteria: $8,450 - $8,800
1) As said, the price has made a breakout from the bullish chart pattern "Falling Wedge". It is confirmed with the Daily candle close above of it and that should be enough. It has worked perfectly as resistance, also we have a strong candle breakthrough which also shows that the area is strong and now it should start to work as a strong support level.
2) Retest - after the breakout from certain chart patterns, the price has a tendency to retest the pattern. So, we can consider that current throwback is a possible retest approach.
3) In general, the area between two light-blue horizontal lines is the strong area, $8,450 - $8,800. Recently and historically this area has turned the price around. It runs through the trendline which also acts as a support and those two should form a pretty strong support level.
4) Inside the strong area is another bomb - Daily EMA200 should act as a support. The Daily EMA200 has cracked only with strong and powerful Daily candles. Yes, it can break it again (break below) but if those Bart Moves occurs so often then BTC is rigged :)
5) To be punctual, then the strongest area inside $8,450 - $8,800 is the orange prize zone. There is EMA200 and no Daily candle closes inside of it. Let's dig into Daily candles:
4-hour chart
6) 4H Golden Cross between EMA100&200
7) Those mentioned 4H EMAs are between those two light-blue horizontal lines - inside the strong area. Should act as support levels.
8) Fibonacci retracement 62% - Golden Ratio. Pulled from recent pump low to the high and at the moment matching perfectly with our possible bounce area.
9) Subjective channel bottom trendline. Subjective because not so clean as it should be.
10) AB=CD D point inside the marked green area. Also, a bit subjective, not so clean as it should be because of the big candles but it matching with my possible bounce area.
11) Wait for a 4H timeframe bullish candlestick formation inside the marked green area (on the 4H chart picture).
Top patterns: Morning Star, bullish Engulfing, bullish Railway Tracks!
Okay, those were my thoughts about the current situation after the pump upwards. Possibly, we can see a continuation wave upwards, it all depends - do the retest area holds it or not!? Definitely, it is a strong price level but is it enough? It should be enough, even visually I cannot imagine another Bart move to the downside.
As said at the beginning of this post "...BTC price and the overall price action are not at the best price levels...". This is because we are in the middle of two strong price levels.
Below the current price, the mentioned $8,450 - $8,800. Above the current price $9,300-$9,500. 9,3-9,5k has been a very strong support level in 2019 and the recent bounce didn't manage to crack it because now, it acts as a resistance. So, at the moment it seems logical that the price takes some rest and it attempts to break it again in the near future. Let's see, at least we have some price levels to follow.
If it was helpful then take a second and support my effort by hitting the "LIKE" button, it is my only fee from You!
Regards,
Vaido
I have waited for a further price action after "tiny" bounce upwards. Movements have stayed stable and it allows us to determine technically some important areas for further movements.
In general, BTC price and the overall price action are not at the best price levels to make precise predictions but still, we have something to start with.
Let's start from the beginning and let's start from the most important - Bitcoin price has made a breakout above the powerful down-trendline. As I have said several times, this trendline from 2019 has worked perfectly as a resistance. After a couple of failed attempts to break above it has finally been successful. The recent pump guided the price above the down-trendline, which is also called a counter-trendline and we can call it also "Bull Flag"/"Falling Wedge".Let's talk a bit more about them:
*Counter-trendline - multiple times mentioned in my posts. The recent long-term trend has been upwards, from $3128 to ~$14,000. Since it made the $14,000 high, the overall bullish sentiment has been low. Mid-term lower lows, mid-term lower highs, and this movement printed the mentioned trendline. It called counter-trendline because it is against the bigger trend, simple. Now, the price managed to crack it and theoretically, the long-term upwards movements may continue. Sound simple, right!? but it isn't.
*Bull Flag/Falling Wedge - to mix it up even more to the bullish side, then more than a month ago (26. of September, you can see it below of this post "Related ideas") I posted a possible movement and a breakout from the massive bullish chart pattern called "Bull Flag":
Actually, pretty creepy to watch it because those movements have been pretty similar compared with my drawings about a month ago. At the moment, it looks more like another bullish chart pattern called "Falling Wedge" but the idea remains the same - bullish. So, as I said at 26. of September: "I change my mid-, long-term bearish bias when the price has made a breakout above the upper trendline". It has made it and I will start to look where I can enter into the next possible waves upwards. My eyes are pointed to $8,450 - $8,800.
Strong Price Level Criteria: $8,450 - $8,800
1) As said, the price has made a breakout from the bullish chart pattern "Falling Wedge". It is confirmed with the Daily candle close above of it and that should be enough. It has worked perfectly as resistance, also we have a strong candle breakthrough which also shows that the area is strong and now it should start to work as a strong support level.
2) Retest - after the breakout from certain chart patterns, the price has a tendency to retest the pattern. So, we can consider that current throwback is a possible retest approach.
3) In general, the area between two light-blue horizontal lines is the strong area, $8,450 - $8,800. Recently and historically this area has turned the price around. It runs through the trendline which also acts as a support and those two should form a pretty strong support level.
4) Inside the strong area is another bomb - Daily EMA200 should act as a support. The Daily EMA200 has cracked only with strong and powerful Daily candles. Yes, it can break it again (break below) but if those Bart Moves occurs so often then BTC is rigged :)
5) To be punctual, then the strongest area inside $8,450 - $8,800 is the orange prize zone. There is EMA200 and no Daily candle closes inside of it. Let's dig into Daily candles:
4-hour chart
6) 4H Golden Cross between EMA100&200
7) Those mentioned 4H EMAs are between those two light-blue horizontal lines - inside the strong area. Should act as support levels.
8) Fibonacci retracement 62% - Golden Ratio. Pulled from recent pump low to the high and at the moment matching perfectly with our possible bounce area.
9) Subjective channel bottom trendline. Subjective because not so clean as it should be.
10) AB=CD D point inside the marked green area. Also, a bit subjective, not so clean as it should be because of the big candles but it matching with my possible bounce area.
11) Wait for a 4H timeframe bullish candlestick formation inside the marked green area (on the 4H chart picture).
Top patterns: Morning Star, bullish Engulfing, bullish Railway Tracks!
Okay, those were my thoughts about the current situation after the pump upwards. Possibly, we can see a continuation wave upwards, it all depends - do the retest area holds it or not!? Definitely, it is a strong price level but is it enough? It should be enough, even visually I cannot imagine another Bart move to the downside.
As said at the beginning of this post "...BTC price and the overall price action are not at the best price levels...". This is because we are in the middle of two strong price levels.
Below the current price, the mentioned $8,450 - $8,800. Above the current price $9,300-$9,500. 9,3-9,5k has been a very strong support level in 2019 and the recent bounce didn't manage to crack it because now, it acts as a resistance. So, at the moment it seems logical that the price takes some rest and it attempts to break it again in the near future. Let's see, at least we have some price levels to follow.
If it was helpful then take a second and support my effort by hitting the "LIKE" button, it is my only fee from You!
Regards,
Vaido
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