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bitcoin’ has found a short-term support after the massive drop. The support is well-known $5,525 from 2017 Oct.-Nov. On the picture below it has held us multiple times on the and so as now.
2017 October- November:
This week:
As You see, this week we have touched this level two times, two times we got the rejection and the candle closes have been above the strong . So, we could assume that one candle close below that level and we could have a confirmed move downwards to the $5k.
Yesterday’s candle gave us a pattern or even two. Because this could be a Dragonfly or the This could be an indication that we have found a short-term . We have two confirmations:
1. We have two rejections from the super strong
2. We have a pattern
Let’s search more confirmation to get a better overview of the market. We need to dig into the lower timeframes to get more confirmations to either direction. When we get out of the market and when we can be safely on the market.
I left several higher timeframes to the side and jumped straight into the 1H timeframe.
On the image above You can see that this blue super strong has played a pretty important role in the last two days. It has been straight on the line and the quick moves up and below it and still, the price is around that support. Like You see then those moves have started to make a pattern – Inverted . Yeah, it would be nice when we got confirmed pattern (right shoulder should bounce upwards from $5,400 and then break above the neckline) from this level because then we get our third sign:
3. chart pattern “Inverted Head and Shoulders”
This is little jumpy today but let’s jump into the 4H chart:
The picture above You can see that we have started the consolidation around strong but we are still on the edge to make another leg down to the major to the $4,929. A small sign is the last 4H candle close below the $5,525 but luckily we have a right shoulder support at $5,400 which should hold the price. The confirmation should come from below the $5,400 – at least a 4H candle close below this area will guide us to the lower levels.
If we want to search confirmation area than it would be around the previous 2018 low level but definitely above the orange which is pulled from 6 Feb.
The road upwards is not easy at all. Firstly because of the low , low buyers interest to buy and etc. Plus we have several strong resistance levels which make the climb upwards heavier.
SUMMARY: The key level is $5,525. Another daily candle above this level and we will be more certain that this level holds us and we may start slowly going upwards but a daily candle close below this level could mean actually disaster because the major support is the $4,929 but don’t know if this holds us. Dream scenario: If the price makes that fast move to the major and the daily candle close is above both levels ($4,929 & $5,525) then BUY whatever You can because then we get from super important levels and 90% we will go upwards.
Hopefully, this breakdown helps You out a little bit to confirm Your own analysis!
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*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Published at Fri, 16 Nov 2018 08:54:41 +0000
