Today we have BTC/USD on the daily chart, I'd like to give you all a brief overview of my current view ahead of the 1st of August.
As you can see price has created several key areas of support and resistance which we can use to our advantage.
Currently, price is trading in between $3,000 and the minor support trendline , this area turned into support around May 2017.
If we manage to break $3,000 we will see a move upwards of $3,500, however, if we continue to bounce off resistance, with larger players taking profit we will see a move back down to $2,000 or lower.
Whilst looking at this chart I would like to address the panic word "crash".
Bitcoin dropping from $3,000 to $1,800 over a period of one month is not a crash, it's a correction.
Even if we witnessed price drop to the lower support trendline at $1,300 (I find highly unlikely, but possible) it would still be in a strong uptrend.
As I have mentioned previously, as bitcoin achieves certain key levels, it will not return to them ever again unless we see a more dominant coin in the future.
The main purpose of this post is to highlight the key price structure within the market, refer to this chart whether you're going long or short.
To those trading over the next two weeks, stay safe and make smart investment decisions.
Komen
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Price has formed a valid bullish three drives pattern on the 5m chart, indicating a move to $2364.
If we break and close above the 0.786 retracement level price will continue to $2550-$2600.
Komen
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Perfect reversal in-between the 0.618 and 0.786, expecting further declines.
Is where we are now a possibility of what TA refers to as a rounded bottom?
TraderJX_
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where does it usually go after the 3rd decline?
LewisGlasgow
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@JC350402, the three drives pattern is all about symmetry, I'll be expecting a drop to $2364, this is where the pattern completes and most likely we will see a retracement from there to the trendline.
TraderJX_
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@LewisGlasgow, once it goes $2364 and then back up to the trendline, what indicators will tell us if it is going UP or back down again?
LewisGlasgow
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@JC350402, I don't use indicators but I will analyse price once the time comes :)
Vol_Slinger
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you the man with the master plan if lewi cant do it no one cannnnn..lol
LewisGlasgow
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@Who_Charted, LOL! Pressure is on now...
sal174
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@LewisGlasgow, thanks for the timely updates. Following your plan man :). I think we will touch 1300 by 29th. A lot of people don't know about BTC Cash Hard Fork so far...once it sinks in, pric will drop hard
LewisGlasgow
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@sal174, you're welcome! Indeed :) there are a lot of one-sided traders out there who believe the only way is up... My opinion changed after the re-test of $3,000.
Let's see how this plays out.
mychartslie
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Every time we've made a big move up with a new ATH, we've always retested the previous ATH peak. We still haven't done that yet at 1300. I'm bearish in the short term.