Welcome friends, to this update analysis on BITCOIN! Let's jump right in. Looking at the four hour chart, you can see that BTC has broken above the bull flag, and is now trading up toward the 61.8% retrace. Slightly above that, is the top of the downtrend channel. I want to draw your attention to the "Inverse H&S + Bull Flag Target." You can see that it rests at about 12,187. Interestingly, you can see that we have a return of clear fractal relationships in the market. We now have two structures (the inverse head and shoulders and the bull flag) which yield virtually identical upside targets. This is an example of multiple formations (geometric shapes) that collectively represent the whole. Does this mean that it's a certainty that the target will be reached? No, it doesn't. There is actually some very significant resistance between the current price action and the target, which is the top of the downtrend channel (in pink.) The target is above the downtrend channel, but it's only a reference that represents a rally equal to 100% of the potential of the bull flag and the inverse head and shoulders pattern. Targets are not set in stone. They are guidelines that show the potential yield of the patterns. The price action along the way, may support or change the targets. That's what technical analysis is all about. It's about watching the markets and moving with them. It's not about setting a target, and then blindly waiting for it to be reached, without any regard for the action along the way. We identify a general target, we form a trading strategy around that target, and we trade it very nimbly while watching the market. Many of the noobs out there don't seem to understand that, and it's only because they truly don't understand analysis and market mechanics.
Looking at the current price action, you can see that BTC has surpassed the 200 EMA (in purple.) The last time we did that, BTC ran up to test the top of the downtrend channel. Inevitably, I think we will at least test the top of the channel here. The upside target shows that the formations suggest a move that could surpass the top of the channel, but that is yet to be seen. The market has shown signs of bottoming, but we really need to see BTC get back above the downtrend channel, to solidify a definite reversal in Bitcoin. However, since LTC has already greatly surpassed the top of it's channel, I think BTC will follow. LTC is the leader right now. It broke out of the inverse head and shoulders first, it formed a bull flag first, and it broke out of it's downtrend channel first. BTC has done everything, but surpass the channel. On the downside, look for the 200 EMA to act as support. You can see that the 50 EMA (in orange) is rising up toward the price action, so that should be supportive as well.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
Looking at the current price action, you can see that BTC has surpassed the 200 EMA (in purple.) The last time we did that, BTC ran up to test the top of the downtrend channel. Inevitably, I think we will at least test the top of the channel here. The upside target shows that the formations suggest a move that could surpass the top of the channel, but that is yet to be seen. The market has shown signs of bottoming, but we really need to see BTC get back above the downtrend channel, to solidify a definite reversal in Bitcoin. However, since LTC has already greatly surpassed the top of it's channel, I think BTC will follow. LTC is the leader right now. It broke out of the inverse head and shoulders first, it formed a bull flag first, and it broke out of it's downtrend channel first. BTC has done everything, but surpass the channel. On the downside, look for the 200 EMA to act as support. You can see that the 50 EMA (in orange) is rising up toward the price action, so that should be supportive as well.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-