Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! Looking at the four hour BTC chart, you can see that Bitcoin has found resistance at the 61.8% retrace, and is now back-testing the black trendline as new support. This is actually very constructive price action. If you recall from my previous post, I said "Just above is the 61.8% retrace, so BTC may just grind higher, as it runs into overhead resistance levels." So far, BTC appears to respecting those levels, as it stair-steps higher.
For the purpose of educational demonstration, I'd like to point out how reactionary my trendlines have been. There has been a lot of speculation as to the accuracy of my trendlines, but you can see that they have been, and continue to be perfectly reactionary. Looking at the green trendline, you can see that it was supportive on 2/2, and then it was resistive on 2/8-2/12, and then supportive again on 2/25. Many people wondered why I used the low of 9/22 to form this trendline. The reason, is that the line produced from that low was intersecting with the recent price action, in a reactionary way. Sure, the low of 9/15/17 was more significant, but connecting that low to the low of 11/12/17, produces a trendline that shoots way above the price action. In other words, it's currently irrelevant. That is a perfect example of how and why I utilized such an obscure trendline. So when you're drawing trendlines on your chart, look for areas that have been reactionary in the past, and try to catch those areas with your lines. The likelihood, is that previous levels of repetitive support or resistance, will continue to be supportive or resistive in the future. With that said, I typically try to avoid cutting through price action, unless there is added technical significance. The top of the pink downtrend channel is another example, where I knew to cut through the price action of the peak on 2/20. The original channel was formed from the all time high and the high on 1/6. The break above it, on 2/20, was a failed breakout. A lot of people were trying to catch that peak in the drawings of their channels, but it was actually a breakout, that reversed back into the channel. You can see evidence of this in the most recent price action, as BTC broke above my channel, and tested it repeatedly, from 2/27-2/28. If my channel was wrong, BTC wouldn't have been back-testing that area.
Overall, the right shoulder continues to fill, as BTC moves closer to completing the pattern. I did see some people saying that there was a "confirmation" of the inverse head and shoulders pattern, and this is technically not true. The confirmation will be on the breakout above the neckline, which is the green trendline connecting the peaks of 1/28 and 2/20. The volume is light, but that is typical for price action into the end of a right shoulder. The MACD is expanding over a weak bullish cross, and it has a constructive look for stair-step price action.
From here, let's look to see if BTC finds support on the black trendline, and then breaks above the 61.8% retrace. Once that move is completed, the next level of resistance is the neckline. A break above that should catapult us into the heavy resistance, at the 50% retrace, around 12,750. A this point, a breakdown back into the downtrend channel would be a bearish development. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
Komen
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Bitcoin is moving in for a test of the inverse head and shoulders neckline!
@MagicPoopCannon – why is breaking through 11k so different from when we tried to break 12k last week? When we tried to hit 12k, BTC failed immediately and plummeted to 9,3. Yet as we approach 11k with resistance, BTC seems to fall slightly ($200 or so) and continue to re-approach the resistance. Why didn't this happen at 12k? Thank you for your future wisdom good sir.
babywhale
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@MagicPoopCannon "The master"!? Jesus Christ you're delusional. A real trader making real money wouldn't waste their time doing write ups like this. If you feel that you are influencing the market with these posts, you're not. The people who read this crap are beginners with very little capital on the line.
Here is an idea, show us some of your trades, declare your trades in your post if you want to gain any sort of respect. You won't, cos people would soon go off you when they realise you can't make a good call for shit. In most of your posts you basically just say " if it goes up a bit it could keep going up, if not then it will go down" well no shit Sherlock.
mb22283
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@babywhale, isn't that what TA is? If this happens then this will happen and if this doesn't happen than this likely will happen. Then you make a trade based on the risk reward of the two scenarios. Also, there are a lot of traders who place their buy order, then place their limit order and walk away so yes, you would have time to work on charts and then spend 10 minutes writing 3 paragraphs.
He's having fun, trying to be entertaining , and trying to be informative... and yes, he is desperately trying to get followers but that's what social media (even this platform) is.
Put up your own charts or stop hating.
WV777
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@mb22283,
Babywhale is pissed of because he may have sold the bottom and wishes for the market to go down so he can tell himself that he’s is not dumb , frustration , thatbis all.
zr0s
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@babywhale, a real trader keeps his calls to himself unless he's getting paid.
TA, IS exactly.....
if (this == "XXX") {
var a= "xx";
} else if (then == YYY) {
var b = "yy";
} else {
var c = "zzz";
}
@babywhale, He's not a fucking being from the future, he's giving scenario's for people to make their own decisions, you're just trying to get trades handed to you on a silver platter.
@MagicPoopCannon – why is breaking through 11k so different from when we tried to break 12k last week? When we tried to hit 12k, BTC failed immediately and plummeted to 9,3. Yet as we approach 11k with resistance, BTC seems to fall slightly ($200 or so) and continue to re-approach the resistance. Why didn't this happen at 12k? Thank you for your future wisdom good sir.