You Are Strong, Young Warrior — Enter The Dojo! BITCOIN! (BTC)
Updated
What's up world? Welcome to this update analysis on Bitcoin! Let's get right to it. Looking at the four hour chart, you can see tha BTC appears to have formed a reactionary bottom, which is consistent with our expectations, in terms of the formation of the proposed right shoulder. However, we aren't out of the woods yet. BTC is actually at a very important point here. Either it's going to continue higher to complete the formation of the right shoulder, or it's going to fail here, and essentially confirm the 50 EMA (in orange) and the 200 EMA (in purple) as overhead resistance. Those are the conditions. As an eager young warrior, hungry and focused in the Masters dojo, you can watch your charts to see where BTC goes from here. On the MACD, you can see that it's attempting to roll back over to the upside, to form a bullish crossover. However, the current action under the moving averages is negative at the moment. So, perhaps this will be a failure, that sends us lower for a test of the green dashed trendline. You can see that we actually haven't reached it yet. Regardless, this is what analysis is all about. We've identified a pattern that could have enormous significance. Now, we need to see how it plays out. From my perspective, if I see BTC confirm below the green dashed trendline, I will be forced to abandon the idea of a possible inverse head and shoulders forming. Sure, it could dip a bit lower, potentially to the 78.6% retrace ($8675,) but we have to be smart. Under those conditions, Magic will be forced to throw the bear mask back on, and embrace the downside like it's my baby. In all honesty, you shouldn't be trading this action. For educational purposes only, this is definitely a scenario in which you want to be on the sidelines, sitting in cash. You could reenter long positions at a breakout above the pink trendline, if you wanted to be aggressive. If you want to be more conservative, you could trade a breakout above the neckline of the inverse head and shoulders pattern, if/when BTC gets there. Otherwise, just chill, because this thing could easily start to plummet, especially if we show sustained weakness by failing at these moving averages. However, as it stands right now, we have a reactionary low like we were expecting. So, at least part of the projection has been fulfilled. Keep an eye on those moving averages, and especially the action around the green dashed trendline, should we turn back to test it. 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-
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-
Note
Updated BTC chart:
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