My Technical Analysis Of A Larger Head And Shoulders Formation
Trade Indicators used - 1 - 3 fibonacci retracements 2 - 2 upper and lower channel trend lines 3 - 30 - 60 - 90 day moving averages. 4 - Time Cycles - These are drawn from the previous pattern prior to breaking the 3K Resistance 5 - Head And Shoulders Formation Triangles
Past - Prior to breaking the $3,000 - We experienced the hard fork news which led to some panic sell off. The market took a dip to $1,800 then after the hard fork activation the market brushed off the split, sold off their Bitcoin cash and started buying up Bitcoin. The market retested the $3,000 mark and finally broke out to a massive bull run up to 5k.
Present - After rejecting the break of $5,000 - Negative news regarding CHINA Banning ICO's, then china banning exchanges, Then China Banning Everything. Curiously this news was released as if perfectly timed to derail the retest of 5k at critical resistance of $4,700 hence throwing the market into a widespread panic sell off after the break of 4k. Triggering massive stop loss limits set by amateur traders, along with margin traders experiencing liquidated accounts, and so on... BLOOD - BATH - Miracle.
Future - After the amateurs lose all their money, The whales find new support levels as well as indicators signaling a buying opportunity. The buying signals will be at or between $2,500 - $3,300. Thus sending us into another bull run up to the goal of 5k - and then surpassing it. Based on the psychological $7,500 and fibonacci retracements the chart indicates the areas where you should partial out of your position. Furthermore you will have a trading opportunity to flip sides and take BTC as well as other coins to the downside.
When this type of market gets exposure, People are ready and itchy to jump in to the next trade. I expect the next wave of buyers and buying to be massive, and alot bigger than what we have ever seen or experienced. Therefore you should be aware of your surroundings not to get burned. AND people WILL get burned!
How To Trade This? And How Can I Stay Safe?
All ALT Coins - Must be considered as shadows of BITCOIN and will follow BITCOINS PRICE ACTION. I DONT CARE HOW GOOD YOUR ALTS ARE - THey are all at the disposal of Crypto Currency Gold Which Is BITCOIN!
Long Positions Opened Between $2,500 - $3,300 For APPX. 30 DAYS Your Target is The Break Of $6,000 - You should start to partial your account holdings @ around $6000 - Rule of thumb is to always take your profits and let the rest run. I Will Be Trading Mostly LTC, XMR, ETH - Due to the fact that they have greater percentage returns than BTC with a lower amount needed to invest.
As soon as you see a break in the market or massive sell of you close your full position and start finding the entry for you to flip sides to short all of these coins all the way down to the right shoulder. At this point you can find a re-entry and take it long til 5k again. Just to flip and take it short back down to below 3k. Here is where you will want to be prepared for the point of no return, as this will be the last time you me or anyone will ever be able to see or experience these levels. Next Target 10K
Hope this helps. Please join my Youtube.com Channel to watch video updates
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Komen
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Bearish Divergence Has Been Trigged At The Break Of $3,500. This can be reversed by tonight when China does more selling off. I would be cautious. Although your entries should have been around $3,300 with a stop loss of the break of 3k
Komen
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As Anticipated The $6,000 is showing some resistance. We may need to take a few attempts. My opinion is that we will break it by this weekend.
Dagangan ditutup: sasaran tercapai
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Bounce from $5,400 and reversal will deem this chart no longer active.
The chart has correctly called the top, It seems as though we found support and will be making new highs. As of now I will consider this chart to have properly called the top, But since we have been continuing to the upside we may see 1-2 more weeks of upward continuation prior to another pullback.