Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! Looking at the four hour chart, you can see that BTC has rallied hard over the past couple days, as it seems to be reacting from a low that was made just barely above the neckline of the head and shoulders pattern. BTC was so close to breaking down, but it seems as though the market wants to trap some more bulls before the breakdown. Looking at this rally, I have absolutely no interest in buying it. Instead I'm just viewing it as a great sell opportunity.
If you recall from my last post, I was covering the bear flag that BTC was creating. As you can see, a breakdown from the bear flag did occur, but price rallied hard after the bear flag breakdown, as a wave of buyers rushed into the market, probably trying to catch the double bottom, and also because BTC was oversold. However, I wouldn't get too excited about the rally. In my view, it's just another pop before the big drop. Looking at the chart, you can see that BTC is right at the 50 EMA (in orange.) Now, I'm not just saying that I don't buy this rally for nothing. Here is the technical reason why I don't think there is much wind in the bulls' sails.
I want to draw your attention to the first blue arrow. If you look at the price action before that low was formed, you can see that there was a bear flag, that broke down to for the sharp low, and then price quickly rallied higher, forming somewhat of a small sloppy inverted head and shoulders pattern in the process. From there, it rallied just above the 50 EMA, where it ran out of gas, and inevitably rolled back over to the downside. Looking at the current action, it looks almost identical. You can see that we formed a bear flag, which broke down to produce a sharp low (blue arrow) and then we have quickly reversed back to the upside. Now, price has run into the 50 EMA, where it's beginning to find some resistance. So, just like the outcome of the rally off of the first blue arrow, I'm expecting a failure in this rally, in the very near future. In my opinion, this is a selling opportunity, and nothing more.
On the MACD, you can see that there was a bullish crossover, that produced some momentum expansion to the upside, but the volume has been on a steady decline during this entire rally off of the low. I still see broad weakness in BTC and the rest of the crypto space. A small bounce doesn't change that. Remember, the markets don't generally move in a straight line. Fluctuations can occur, but the important thing is that we remain on the right side of the market. Right now, this is an overwhelmingly strong bear market, that is experiencing a small bounce. The trend is your friend. Know that, own it, and you will avoid disaster. With that said, the overall trend is down, down, down, and it is highly likely to remain that way. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir! ;)
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Please do yourself a favor and your bank account and steer clear from these charts. Not to discredit MPC's charts, although they're pretty bad as it is, he tries to analyze too many micro trends. If you're coming here to analyze micro trends please look at the bigger picture because the market moves too quickly for his charts to always be right. Most of his charts that are correct were solely because of an obvious clear as day trend or luck. The guy's name is "MagicPoopCan" and you're taking/risking your hard earned bucks on his advice? Quit taking short cuts and learn how to analyze charts for yourself. You'll be a lot more successful down the road.
Previous waves resistance = new waves support. BTC is going to bottom out between $2500-$3000. How strong the movement down is indicative of the price. Keep your cash in USD and off the market unless you can successfully day trade without coming here. We'll probably bottom out within the next 2 weeks.
Snuby3
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So don't listen to him, but listen to you say the same thing he said? Weird...
@Snuby3, also... one thing to note. The $2500-$3000 levels have been obvious since January. Look at BTC back in it's peak levels in 13'. Roughly an 85% retracement to the $180 levels (it's former resistance levels) then ran up to roughly the $3000 levels where it retraced back. What a weird coincidence. An 85% retracement from $20,000 (im using round numbers people), would be 3000......its former resistance levels... I don't need to draw imaginary head and shoulders patterns to plot that.
But everyone will continue thinking that Google banning ICO ads has anything to do with anything.
But I think Snuby3 will agree with me in....DYOFR FOLKS!
GL to all.
Snuby3
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@mashford, to be honest, when you said, "not to discredit his charts" in a post that is clearly discrediting him, his TA, and his charts, you have confirmed yourself as manipulative to me. because you said one thing while doing the other. so i immediately see you as having your own motives here, not having helping me or anyone else here as a motive. nothing you say bears weight to me from that point forward. its the psychology of it, from my perspective.
mashford
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@Snuby3, haha no understandable m8. I actually got a good laugh when I read your first comment because you're exactly right.
piposkikos123
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@mashford, dude thats what he said he is just followin the movement
somuchcloudporn
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don't you guys realize, this guy makes "calls" after the price has already been either rejected by support, or resistance. then a day later says he was correct in said call. Price Action has already occurred, this guy is joke. worthless.
You guys need to learn TA on your own accord and stop relying on people like this one, who can't educate you in proper TA. There are plenty of resources online to learn how to accurately asses a chart.
Previous waves resistance = new waves support. BTC is going to bottom out between $2500-$3000. How strong the movement down is indicative of the price. Keep your cash in USD and off the market unless you can successfully day trade without coming here. We'll probably bottom out within the next 2 weeks.