Hello everyone,
Welcome to my analysis. Today, we will look at BTC again (as it drives the entire crypto market these days).
At the beginning, i have to say, that the price action was very unpredictable (at least for me) in the past few days. I was trading few scenarios which turned out to be invalid. So, as for now, i see BTC as not tradeable asset for short term, unless we see a good prices for entries in long or short positions. But what are good prices? Let's have a look at the chart!
At the moment, we are most likely forming a triangle consolidation pattern (yellow triangle). There is a good chance the current short uptrend will reverse at cca 7100 level which will confirm this scenario. If anyone really wants to trade, 7100 is kind of first reasonable level to enter a short position. However, there is a chance we might break the yellow triangle upwards, which will result in test of the next fib fan resistance at around 7500. This would be an awesome entry into short position, however i don't see this situation happening (as it would result in breaking the big descending red triangle - and it is not the time yet!).
The other more interesting question is: When the hell do we buy? And.. my answer is simple. Looking at the chart, i don't see 6000 as bouncable support anymore. Taking into consideration rules of Elliot Wave and next fib levels, i see a good potential for very strong bounce in 5500 to 5000 price area (depending on time). I will be definitely laddering my buys here.
As for the indicators. We see a huge MACD squeeze forming a triangle on the histogram and also MAs. The unlikely scenario of reaching 7500 mentioned previously does not look so unlikely when looking on the MACD! We see a plenty of room to grow for the histogram and also for the moving averages until a resistance is met. This means, bounce to that level will be probably very impulsive (if it happens). On RSI and Stoch RSI, the values are currently in bullish territory, which signifies considerable likelihood of further short term upwards movement (to 7100 area level).
If you have either positive or negative thoughts about my analysis, feel free to share them below :)
I am not your financial adviser, trade at your own risk!
Best Regards,
D.
Welcome to my analysis. Today, we will look at BTC again (as it drives the entire crypto market these days).
At the beginning, i have to say, that the price action was very unpredictable (at least for me) in the past few days. I was trading few scenarios which turned out to be invalid. So, as for now, i see BTC as not tradeable asset for short term, unless we see a good prices for entries in long or short positions. But what are good prices? Let's have a look at the chart!
At the moment, we are most likely forming a triangle consolidation pattern (yellow triangle). There is a good chance the current short uptrend will reverse at cca 7100 level which will confirm this scenario. If anyone really wants to trade, 7100 is kind of first reasonable level to enter a short position. However, there is a chance we might break the yellow triangle upwards, which will result in test of the next fib fan resistance at around 7500. This would be an awesome entry into short position, however i don't see this situation happening (as it would result in breaking the big descending red triangle - and it is not the time yet!).
The other more interesting question is: When the hell do we buy? And.. my answer is simple. Looking at the chart, i don't see 6000 as bouncable support anymore. Taking into consideration rules of Elliot Wave and next fib levels, i see a good potential for very strong bounce in 5500 to 5000 price area (depending on time). I will be definitely laddering my buys here.
As for the indicators. We see a huge MACD squeeze forming a triangle on the histogram and also MAs. The unlikely scenario of reaching 7500 mentioned previously does not look so unlikely when looking on the MACD! We see a plenty of room to grow for the histogram and also for the moving averages until a resistance is met. This means, bounce to that level will be probably very impulsive (if it happens). On RSI and Stoch RSI, the values are currently in bullish territory, which signifies considerable likelihood of further short term upwards movement (to 7100 area level).
If you have either positive or negative thoughts about my analysis, feel free to share them below :)
I am not your financial adviser, trade at your own risk!
Best Regards,
D.