This is just a quick update on BTC's current stress zones. The outlook after Friday's sell off is a High Volatility zone within 6855 - 7455 where the price is currently consolidating. A high volume break above or below this zone will set the direction for the next 48 hours. Notice how the supply channel started on April 25th has provided support so far on more...
The markers were there regarding the importance of this first strong Resistance and gave hints on how to trade it: You were also informed of how parabolas tend to behave during bull cycles: So now that we have established that trading Bitcoin based on its historic price action isn't all that bad we can start drawing some more meaningful conclusions....
Pattern: Rectangle on 1H. Signal: Bullish on the Support, Bearish on the Resistance (scalping). Target: Short TP 12.4600, Long TP 12.5800.
Pattern: Channel Down on 1D. Signal: Bearish as long as the Lower High sequence holds. Target: 14.400 and if the price bounces back to the resistance then aim at 14.250.
Pattern: Bearish reversal candle pattern on a 1D Lower High sequence. Signal: Bearish after three straight bearish 1D candles printed. Target: 1270 (just above the 1D Support).
On this analysis I compare Bitcoin's two most recent cycles: the 2014 - 2016 and the current one 2018 - 2019. What stands out is that even though they both followed the same trend line (i.e. after the peak the bear market followed, a bottom was made on the parabolic curve and then the new bull cycle gradually started), they tend to diverge at some parts, only to...
Pattern: Structured rise supported by supported by channeled Higher Low levels. Signal: Bullish once the new Higher Low Support is tested. Target: 2.80000.
Pattern: Channel Up on 1W. Signal: Bullish (1) on the next pull back towards the High Volatility Zone and (2) if the Higher Low trend line of the Channel Up breaks. Target: (1) 0.4800 (2) 0.8000.
Pattern: Rectangle on 1D. Signal: Bearish after the price was rejected on the 8.7200 Resistance. Target: 8.5300 (the immediate 1D Support).
Pattern: Channel Down on 1D. Signal: Bearish as the price made a new Lower High. Target: 16.320 (next potential Support).
Much is being discussed over Bitcoin's recent hyper aggressive rise. It is beyond any reasonable doubt that it is a strong confirmation that the new Bull Market has started. Backed by strong fundamentals, this time can be different , more aggressive and unpredictable . It is interesting however to keep in mind how such parabolic movements typically end up. For...
Pattern: Rectangle on 1D. Signal: Bearish after the price was rejected near the 1D Resistance. Target: 11.0575 (top of the 1D Support Zone).
Pattern: Channel Up on 1W. Signal: Bullish as the price rebounded on the Channel's Higher Low. Target: 12600.
Pattern: 1W Channel Up. Signal: Bullish as every pull back is supported on both inner and outer Higher Lows. Target: 198.000 (structured Higher High growth rate).
Just a quick mention on something interesting I stumbled across while constructing my long term LTCBTC strategy. During the 2015 recovery phase after the bear market, Litecoin started rising aggressively prior to Bitcoin and led cryptos into the start of the new bull market. At some point it pulled back considerably and BTC started gaining momentum and lead the...
The Inverse Head and Shoulders pattern I posted on early April has been completed and TRXUSD is now on the final accumulation phase before the major bullish break out of this cycle. I have two targets on this one: 0.03800 on the short term and 0.09500 on the medium term. The Inverse Head and Shoulders neckline should provide support during this process.
The title says everything. I don't want to get into much detail. Just want to point out the similarities and differences of the two time periods when Bitcoin broke the 1W MA100 after the market made a bottom. Note that it is not necessary to follow the exact same pattern as the fundamentals this time are very strong. Similarities: * The rise in 2015 stopped at...
Pattern: Channel Up on 4H. Signal: Bullish if the 1.6120 Resistance breaks. Target 1.61850 (potential peak of the inner Rising Wedge.