BITCOIN - One Really Strong Area, Reversal/Target Areas!
Yesterday, after multiple suspicious signs (in the end, they turned technically confirmed signs) and multiple mentions, the BTC price made a breakout below the consolidation area, it made a break below the Head and Shoulders pattern neckline and also the counter trendline got cracked. Now there is a question where I can buy it back or what should I do!? IF the price continues to go lower then in this idea post You can find some opportunities where You can jump back in. Yesterday, it was a nice breakout trade opportunity but now, we have to look where it gonna land and let's try to catch reversal trade opportunity. If You are short then these areas can easily be used as short-term target areas.
To be said, I found two possible bounce areas and those areas are far lower than the current price but I would like to point those out, just in case. First one is a bit higher and it has a lower count of criteria. This area needs just a little bit of faith onto the BTC because technically it is decent level but if the train starts to come down then probably it doesn't stop there, yeah obviously if the big boys don't want to come into the market exactly there ;)
The first possible bounce area, which can be easily a target area, is around $3,680:
There are:
- Fibonacci retracement golden ratio of 62%
- Historically a strong support area
- The last higher low. If this level holds BTC then we have still decent mid-term market structure with higher highs and higher lows.
Do we want or don't want but technically we have a super-strong area around the $3,500. Multiple price action criteria showing that the price may take a direction exactly into this area where we can make reversal trades more securely than any other levels before that!!
Let's start to count those criteria which matching exactly on this level:
1. The round number $3,500 should work as a support level
2. In this box, we have historically a strong area around $3,560 (blue horizontal line). It has worked as a strong support level and it has worked as a strong resistance level
3. The major counter trendline (black line) from the 2018 low point since 15. December, which acts as a support level
4. ABC equal(!) waves from the February top and the C point is exactly on the lower blue box:
So far 4 criteria and they meet exactly at this lower marked area but that's not all...
5. Fibonacci Extension 127%:
Again, exactly in this blue box!
6. And the final criterion is like a cherry on the top of the cake - Parallel channel projection:
...and again, EXACTLY it shows that the price may reach into this blue area which is really strong!
SUMMARY: The BTC movements are usually full of surprises but those were my support/reversal/target areas. Full of surprises? Yes, maybe the price doesn't reach into these areas but to You and for me it was good to point out those levels, just in case - if the panic kicks in.
If the price starts to go higher from the current area then, great, we don't need those levels, but the current market situation is a little bit messy that we almost need this throwback which should clearer the situation a bit.
Do not forget to support my idea post by hitting the "LIKE" button!
Thank You!
Have a nice day,
Cheers!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Previous analysis:
To be said, I found two possible bounce areas and those areas are far lower than the current price but I would like to point those out, just in case. First one is a bit higher and it has a lower count of criteria. This area needs just a little bit of faith onto the BTC because technically it is decent level but if the train starts to come down then probably it doesn't stop there, yeah obviously if the big boys don't want to come into the market exactly there ;)
The first possible bounce area, which can be easily a target area, is around $3,680:
- Fibonacci retracement golden ratio of 62%
- Historically a strong support area
- The last higher low. If this level holds BTC then we have still decent mid-term market structure with higher highs and higher lows.
Do we want or don't want but technically we have a super-strong area around the $3,500. Multiple price action criteria showing that the price may take a direction exactly into this area where we can make reversal trades more securely than any other levels before that!!
Let's start to count those criteria which matching exactly on this level:
1. The round number $3,500 should work as a support level
2. In this box, we have historically a strong area around $3,560 (blue horizontal line). It has worked as a strong support level and it has worked as a strong resistance level
3. The major counter trendline (black line) from the 2018 low point since 15. December, which acts as a support level
4. ABC equal(!) waves from the February top and the C point is exactly on the lower blue box:
5. Fibonacci Extension 127%:
6. And the final criterion is like a cherry on the top of the cake - Parallel channel projection:
SUMMARY: The BTC movements are usually full of surprises but those were my support/reversal/target areas. Full of surprises? Yes, maybe the price doesn't reach into these areas but to You and for me it was good to point out those levels, just in case - if the panic kicks in.
If the price starts to go higher from the current area then, great, we don't need those levels, but the current market situation is a little bit messy that we almost need this throwback which should clearer the situation a bit.
Do not forget to support my idea post by hitting the "LIKE" button!
Thank You!
Have a nice day,
Cheers!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Previous analysis:
Komen:
Here is a little bit deeper overview of the current situation.
I tried to draw this trendline as precise as I can and we have a breakout from there and this trendline has held the price from 5. May 2018 and the last 4H candle was the first time when it gets a close above this trendline but this is almost too old in the crypto world that it probably doesn't play a significant role but still, we have a bullish sign.
Now, here depends, do the old and historically worked trendline wins the battle with "fresh" trendlines?
As you see we have this counter trendline (blue) and usually, this is super common that the price cracks the trendline and after that, it makes a retest and the breakout direction movement may continue. This could possibly happen at the moment:
- we have a counter trendline which works as a resistance
- the round number $4,000 act as a resistance
- the black trendline from the last HH should also act as a resistance.
So, we have pretty heavy resistance above us and to make any bullish assumptions is definitely too early. Bullish assumptions and confirmations You can make after the price has reached into the green area. Then we can be sure that it starts to go higher but currently, it was just a nice recovery/Bart move (Bart move is like a Bart Simpson haircut, sharp edges and zig-zag on the top of the head. From the price movement perspective: sharp movement downwards, a little consolidation and sharp move back upwards) and we have just one confirmation - break above the historical trendline!
Also, I would like to welcome my new followers and thank You for the support, it was a pleaser to be TOP 1 with my idea post!
All the best!
I tried to draw this trendline as precise as I can and we have a breakout from there and this trendline has held the price from 5. May 2018 and the last 4H candle was the first time when it gets a close above this trendline but this is almost too old in the crypto world that it probably doesn't play a significant role but still, we have a bullish sign.
Now, here depends, do the old and historically worked trendline wins the battle with "fresh" trendlines?
As you see we have this counter trendline (blue) and usually, this is super common that the price cracks the trendline and after that, it makes a retest and the breakout direction movement may continue. This could possibly happen at the moment:
- we have a counter trendline which works as a resistance
- the round number $4,000 act as a resistance
- the black trendline from the last HH should also act as a resistance.
So, we have pretty heavy resistance above us and to make any bullish assumptions is definitely too early. Bullish assumptions and confirmations You can make after the price has reached into the green area. Then we can be sure that it starts to go higher but currently, it was just a nice recovery/Bart move (Bart move is like a Bart Simpson haircut, sharp edges and zig-zag on the top of the head. From the price movement perspective: sharp movement downwards, a little consolidation and sharp move back upwards) and we have just one confirmation - break above the historical trendline!
All the best!
Komen:
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This Bart move made a very important breakout which will be even a bullish confirmation but it is too early to say because the orange trendline is not so precise from 5. May 2018 but still it could be a hidden huge bullish sign!
Let's say that the full bullish confirmation comes after a 4H candle close above the upper black trendline around $4,030!
Looks like BTC is pretty strong to make a breakout upwards but let's see, can't say it before a confirmation!