BTCUSDT fakeout after fakeout in a descending channel part 2
In my last post (tradingview.com/chart/BTCUSDT/1JnLE93F-BTCUSDT-fakeout-after-fakeout-in-a-descending-channel/) I mentioned daily descending channel and possibility of Bitcoin going lower based on upper trendline of that channel. Now since a new week started, we got another confirmation from the weekly. As you can see on the chart the aforementioned channel is inside a yellow circle showing weekly action. And now if you look at the second yellow circle, you will see that we had almost exactly the same price action in August 2019.
I trade patterns and often look for similarities in past price action and my past trades. It doesn't happen very often that price action is almost exactly the same but so far it seems to be the case here. In both cases we have high followed by big red candle and further selling, bounce attempt, moment of indecision and finally big drop. I believe that at this moment we are during indecision phase and we will see a sideways BTC followed by a big drop. Therefore I'm waiting for price of Bitcoin to reach 8000s and possibly upper 7000s.
SPX inching higher is holding the price of Bitcoin above 9k but due to buyers weakness, they are not able to push it even above 9.4k despite SPX touching 3200. That's another sign of weakness for me and I'm still short until that level breaks with a strong follow-through and not another 5 minute candle which fades into nothing.
Last but not least we have oversold Bitcoin dominance close to strong support at 62, which could suggest that dominance will have at least a relief rally. How can it do that? By either Bitcoin dropping and alts dropping much faster or Bitcoin going up and alts lagging behind.
Tread carefully, interesting times ahead.
I trade patterns and often look for similarities in past price action and my past trades. It doesn't happen very often that price action is almost exactly the same but so far it seems to be the case here. In both cases we have high followed by big red candle and further selling, bounce attempt, moment of indecision and finally big drop. I believe that at this moment we are during indecision phase and we will see a sideways BTC followed by a big drop. Therefore I'm waiting for price of Bitcoin to reach 8000s and possibly upper 7000s.
SPX inching higher is holding the price of Bitcoin above 9k but due to buyers weakness, they are not able to push it even above 9.4k despite SPX touching 3200. That's another sign of weakness for me and I'm still short until that level breaks with a strong follow-through and not another 5 minute candle which fades into nothing.
Last but not least we have oversold Bitcoin dominance close to strong support at 62, which could suggest that dominance will have at least a relief rally. How can it do that? By either Bitcoin dropping and alts dropping much faster or Bitcoin going up and alts lagging behind.
Tread carefully, interesting times ahead.
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