The price of Bitcoin has no direction right now. Already for the whole day, it is fluctuating around support S1 level. I expect this to continue for a while. Maybe in the evening that we see a move in either direction.
I stay away from trading today.
The price is heading North right now towards Pivot point. The question is: Will it bounce at Pivot point or will it head towards the brown, dashed trendline and test it again?
However, what I expect is that BTCUSD will bounce on that trendline and thereafter lose value rapidly. The next important down targets are 6000 and 5511.
I leave you my graphic so that you leave me some opinion about it, and what a hunch you could have
I use a few techniques only when it comes to charts. I am a day-trader and I need criteria for deciding if a trade is on target or not. For me, candlestick pattern analysis, trend lines, a simple way of measuring distances and Pivot points work best. To be frank, I have to admit that I do not understand Elliott waves or Fibonacci pattern. As my results are quite good, especially when it comes to predicting targets, I will stay with my few signals I observe.
Your Pivot points are close to the ones I calculated. I only use R2 to S2 levels, while you use also R3 and S3. By the way, how do you calculate R3 and S3? What do you use the Pivot points for?
I also used the red dotted trendline when approaching that level. However, right now, it is not of importance. Therefore, I let it away until the price will approach that level again.
I think that you did a great work with this chart. You know your ideas behind the arrows and trendlines. It is also a purpose of these drawings to remind the creator of his trains of thought. I create sometimes also complicated charts while in the process of developing an opinion. However, for publishing, I strip off all the unnecessary things. For trading, the picture has be to simple and easy to understand. The plan has to have clear entry and exit points as well as criteria to exit a trade when things do not develop like expected.
I hope you like what I wrote. I am sure one of the experienced traders on this site would write a completely different review. This is my personal opinion only. You have to find out what works best for you. Everybody has his own style. May be I find other useful techniques and will add them to my repertoire in the future.
My friend, keep up the good work and enjoy Sunday.
On February 5, 2018 I published an idea about the target of the current major downtrend.
I expect that BTCUSD will find stable ground at 2403. It's a long way South.
Right now is a crucial moment. The major bearish scenario remains intact only, if BTCUSD cannot break the brown, dashed trendline. It has to stay below that trendline. It is a moment that traders have to observe closely and be prepared for the unforeseen. However, I expect that the price will bounce on the Pivot point or on the trendline.