BTCUSDT: Update from the previous Trendline we made.
Big shout out to the commenter on my previous post, thank you for helping me adjust my trendlines to form the correct (subjective) chart pattern.
If we think of the market's enthusiasm as a balloon, the Average Sentiment Oscillator is our gauge. When it's too high, it means excitement might be peaking, which can sometimes lead to a downturn, as not everyone can win in this game. The Stochastic RSI, another tool, helps us spot when the market's energy is fading. If it shows a 'reset' below a certain level without a positive signal, it's like our gauge is warning us that the balloon is losing air.
Analysis of Bearish Potential:
- Trend Lines and Patterns: Rising wedge pattern indicating potential breakdown.
- Average Sentiment Oscillator: High position suggesting overbought conditions.
- Stochastic RSI Div: 'Reset' below 25 without green 'R' signal, indicating potential move lower.
Now, imagine the market is a ship in open waters. Certain news events are like storms on the horizon.
3 Bearish News Potentials:
1. Regulatory Crackdown: Possible stricter regulations or bans on crypto transactions.
2. Security Breaches: Reports of major security breaches within cryptocurrency platforms.
3. Economic Policies: Unfavorable economic policies affecting crypto liquidity or attractiveness.
Thesis for Bullish Continuation:
- Support Levels: Strong buying interest above the 37k support level.
- Elliot Wave Analysis: Potential for another leg up to complete the Elliot Wave pattern towards 42,000.
- Sentiment and Momentum: Upward trend in Average Sentiment Oscillator and Stochastic RSI 'green R' signal.
Pivot Areas for Trade Reversal:
- Below Support: Decisive drop below 37k indicating a bearish trend pivot.
- Top of the Wedge: Failure to break the wedge upper line as a bearish reversal point.
- Stochastic RSI Div Crossing: Watch for cross above 25 with 'green R' for bullish reversal if in short.
Confirmation for Going Long:
- Breakout Confirmation: Strong close above the wedge on significant volume.
- Stochastic RSI Div 'Green R': Signal coinciding with upward price action.
- Sentiment Oscillator Trend Change: Reversal indicating reduced selling pressure.
Confirmation for Going Short:
- Wedge Breakdown: Price breakdown from wedge on high volume.
- Stochastic RSI Div Continuation: Stays low without 'green R' while price falls.
- Sentiment Oscillator Decline: Sharp downturn at overbought levels signaling short entry.
Note: Use stop losses and consider risk-reward ratio fitting your trading strategy and risk management. NAFA, do not be part of the dumb money.
If we think of the market's enthusiasm as a balloon, the Average Sentiment Oscillator is our gauge. When it's too high, it means excitement might be peaking, which can sometimes lead to a downturn, as not everyone can win in this game. The Stochastic RSI, another tool, helps us spot when the market's energy is fading. If it shows a 'reset' below a certain level without a positive signal, it's like our gauge is warning us that the balloon is losing air.
Analysis of Bearish Potential:
- Trend Lines and Patterns: Rising wedge pattern indicating potential breakdown.
- Average Sentiment Oscillator: High position suggesting overbought conditions.
- Stochastic RSI Div: 'Reset' below 25 without green 'R' signal, indicating potential move lower.
Now, imagine the market is a ship in open waters. Certain news events are like storms on the horizon.
3 Bearish News Potentials:
1. Regulatory Crackdown: Possible stricter regulations or bans on crypto transactions.
2. Security Breaches: Reports of major security breaches within cryptocurrency platforms.
3. Economic Policies: Unfavorable economic policies affecting crypto liquidity or attractiveness.
Thesis for Bullish Continuation:
- Support Levels: Strong buying interest above the 37k support level.
- Elliot Wave Analysis: Potential for another leg up to complete the Elliot Wave pattern towards 42,000.
- Sentiment and Momentum: Upward trend in Average Sentiment Oscillator and Stochastic RSI 'green R' signal.
Pivot Areas for Trade Reversal:
- Below Support: Decisive drop below 37k indicating a bearish trend pivot.
- Top of the Wedge: Failure to break the wedge upper line as a bearish reversal point.
- Stochastic RSI Div Crossing: Watch for cross above 25 with 'green R' for bullish reversal if in short.
Confirmation for Going Long:
- Breakout Confirmation: Strong close above the wedge on significant volume.
- Stochastic RSI Div 'Green R': Signal coinciding with upward price action.
- Sentiment Oscillator Trend Change: Reversal indicating reduced selling pressure.
Confirmation for Going Short:
- Wedge Breakdown: Price breakdown from wedge on high volume.
- Stochastic RSI Div Continuation: Stays low without 'green R' while price falls.
- Sentiment Oscillator Decline: Sharp downturn at overbought levels signaling short entry.
Note: Use stop losses and consider risk-reward ratio fitting your trading strategy and risk management. NAFA, do not be part of the dumb money.
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