XBT/USD Bitmex Reasoning.

10 Jan 2019

First of all, let's consider the dump: dump in two waves usually leads to the formation of a consolidation, because the market at one point did all the actions that it could have done. After this, more likely, we will see the consolidation.

What to do now?
Firstly we need to determine the resistance and the support line of consolidation's corridor. Support levels: $3550 and $3400.

Resistance level: 3700$. More likely we will see some upward movements to $3670-$3700. If we are able to break this level and keeps above it - then we can consider further upward movements. If not - we will fall to $3600 again, more likely break it and fall further with the target of $3400.

12 Jan 2019

Nota

Both in one and in the second case a reversal pattern is formed, either H&S or Double Bottom.

If we go beyond the triangle, we will revise the idea.