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Bitcoin / Euro

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BTCEUR trade ideas

BTC/Euro 7/21/2020Hello and welcome to this analysis on BTC/Euro. BTC has been in a very boring sideways range since the 7th of May. I choose to show the Euro pair because I believe the price action is much more visible on this pair compared to the USD pair. Looking at the consolidation on the daily chart, the price has been making series of lower highs other than the fake-out at first of Jun that price broke above its diagonal resistant but couldn't manage to hold above it and instead it got smashed back down on high volume. looking at the bottom of the range, the price has consistently tapped the horizontal support at 7900 but each bounce from the support got shorter, and at the moment it is consolidating on the support. Support and resistance tend to become weaker the more price tests them. Also, the failure to make any higher high after almost 3 months of consolidation and resting on the support is a sign of weakness and distribution. The technical formations that I mentioned are describing a classic descending triangle which is usually a bearish pattern and can act as a topping formation. The target of the pattern is at 6660 Euro if price breaks below 7900 and don't manage to regain it back. Looking at the volume you can see it has been falling since price topped at 9200 back at may and it has almost dried up. Also looking at the BBW at the bottom which is a volatility indicator you can see it has been going down and is resting at its historical lows at the moment. These 2 indicators are telling us that a very big move is likely to happen soon and they also confirm the deciding triangle pattern. BTC tends to trend for a while and move between 20 to 30% after it breaks 3 or more months-long consolidations while its volatility metrics are at the historical lows. There is not any major horizontal support below the formation from 7900 till 6900. As you can see on the volume profile there is a volume gap in that price range. So the price can rapidly move down if it breaks below the formation. Also, there should be a lot of stop losses and liquidations below the support that will get triggered and push the price lower if it breaks the 7900 support. These technical formations suggest a 15-20% drop in the price in the coming days as long as price doesn't manage to make a higher high above 9350 and break above the diagonal resistance of the formation. Hope you enjoyed this analysis, good luck trading. :)
Short
by Trader_Shayan
3
Same BTC, but different pair...Looking at things from a different view can always help! BTCEUR is trading in a range just like BTCUSD but not as many fakeouts here and much more horizontal! The bottom of mid-term range where BTCEUR is currently sitting (7900) can break soon since there is not much liquidity left, we may see a free fall like previous times to 5k area (6k on BTCUSD) or even lower (somewhere around 3k) if it doesn't hold. On the bullish side, we can expect a new ATH, if BTC breaks out of the resistance zone (blue area).
Short
by RezzaHmt