Hi,
Bitcoin price has collapsed and looks like it may fall even deeper than that.
You have seen those lines before but a quick explanation. Since 2019 June, the price has moved downwards. It has printed clean lower highs and lower lows. Lower lows have been pretty bumpy and sloppy but lower highs have been clean as a whistle. Basically, those two bottom "trendlines" (black and white) are copy/paste from upper blue because the upper trendline is strong and clear. It means that those lines are parallel channels and usually if the price starts to go into certain direction then very often this happens inside the channel(s).
So, if we look at that middle black trendline then probably the first stop and a possible mid-term bounce may occur from the marked green area. I have posted a similar area at the end of September and it worked out pretty nicely (you will find it at the end of this post).
THE GREEN AREA
The green area stays below $7,000! The sooner the price goes there the higher it will stop and that's why this area starts from $6,800 and it ends around $6,000.
The marked green area consists of:
1) Channel
As said previously, this black trendline is copy/paste from upper blue and actually, this black trendline has held the price already after it touches $8,000. There we got some profitable short-term buy opportunities but for now, $8k is history and the price approaching that black trendline third time. This black trendline is the major criteria, that's why I started to "build" up a possible mid-term reversal area around it.
So, the black trendline (parallel channel bottom trendline) should act as a support level.
2) Orange horizontal line "Strong Price Level I" - $6,720
I have marked the area on the Weekly timeframe. Historically, it has 12-13 rejections upwards and downwards, which allows thinking that if the price starts to approach it again, it may start to work as a support.
3) Red horizontal line "Strong Price Level II" - $6,133
Also, I marked the area on the Weekly timeframe and also, historically it has 12-13 rejections to either direction. This is THE area because we should all remember: the year 2018, the support $6,000. Almost the entire year it was on our charts: "If it goes to 6k it goes up again, if it goes below 6k it will drop heavily" etc.&etc.
Actually, the whole area between those two strong price levels is really strong and most importantly, it forms a crossing area between the black trendline.
4) Weekly EMA100 ~$6,800
It held the price for almost 5 months in 2018 around 6k. After it got cracked the price dropped heavily to $3,128. So, watch out for that ;)
5) Several Fibonacci Extensions.
Pulled from different waves and pulled from different tops. Inside the marked green area are 127%, 2x 162%, 200%. Definitely, they add some strength to the possible stop/reversal area.
6)* Fibonacci Golden Ratio 62%
It is slightly above the marked area. It doesn't add strength exactly to the green area but still, it is nice to know that Fibonacci 62% is around it because historically, Bitcoin price loves to bounce from the golden ratio price zones. Especially if Fibo is pulled from long term highs and lows. At the moment Fibo 62% pulled from 2019 low $3,128 to 2019 high ~$13800
7)! Wait for a bullish candlestick formation from the Daily timeframe. As you see from my idea post below, the strong area is discovered, the price reached it, we got a textbook bullish Engulfing and the bounce occurred.
Be patient and let the price action guide you into the trade!
SUMMARY: I think the price may fall lower or actually, I want it. Then we are technically a pretty strong area and we can search for some short-term trade opportunities. At the moment, we are middle of nowhere and trading in those levels is highly risky. To be said, if I have marked those areas, then sooner or later it has touched the marked strong areas. The current plan is simple, if you are short, it should be your possible take profit area, if you are searching for buys, then this is the area. The current idea post buy trade is triggered after you have seen a bullish Daily candlestick pattern inside the marked area! The green price zone is the keep-an-eye-on-it-area!
If it was helpful then take a second and support my effort by hitting the "LIKE" button, it is my only fee from You!
Mentioned Idea Post:
If it was helpful then take a second and support my effort by hitting the "LIKE" button, it is my only fee from You!
Best regards,
Vaido
Bitcoin price has collapsed and looks like it may fall even deeper than that.
You have seen those lines before but a quick explanation. Since 2019 June, the price has moved downwards. It has printed clean lower highs and lower lows. Lower lows have been pretty bumpy and sloppy but lower highs have been clean as a whistle. Basically, those two bottom "trendlines" (black and white) are copy/paste from upper blue because the upper trendline is strong and clear. It means that those lines are parallel channels and usually if the price starts to go into certain direction then very often this happens inside the channel(s).
So, if we look at that middle black trendline then probably the first stop and a possible mid-term bounce may occur from the marked green area. I have posted a similar area at the end of September and it worked out pretty nicely (you will find it at the end of this post).
THE GREEN AREA
The green area stays below $7,000! The sooner the price goes there the higher it will stop and that's why this area starts from $6,800 and it ends around $6,000.
The marked green area consists of:
1) Channel
As said previously, this black trendline is copy/paste from upper blue and actually, this black trendline has held the price already after it touches $8,000. There we got some profitable short-term buy opportunities but for now, $8k is history and the price approaching that black trendline third time. This black trendline is the major criteria, that's why I started to "build" up a possible mid-term reversal area around it.
So, the black trendline (parallel channel bottom trendline) should act as a support level.
2) Orange horizontal line "Strong Price Level I" - $6,720
I have marked the area on the Weekly timeframe. Historically, it has 12-13 rejections upwards and downwards, which allows thinking that if the price starts to approach it again, it may start to work as a support.
3) Red horizontal line "Strong Price Level II" - $6,133
Also, I marked the area on the Weekly timeframe and also, historically it has 12-13 rejections to either direction. This is THE area because we should all remember: the year 2018, the support $6,000. Almost the entire year it was on our charts: "If it goes to 6k it goes up again, if it goes below 6k it will drop heavily" etc.&etc.
Actually, the whole area between those two strong price levels is really strong and most importantly, it forms a crossing area between the black trendline.
4) Weekly EMA100 ~$6,800
It held the price for almost 5 months in 2018 around 6k. After it got cracked the price dropped heavily to $3,128. So, watch out for that ;)
5) Several Fibonacci Extensions.
Pulled from different waves and pulled from different tops. Inside the marked green area are 127%, 2x 162%, 200%. Definitely, they add some strength to the possible stop/reversal area.
6)* Fibonacci Golden Ratio 62%
It is slightly above the marked area. It doesn't add strength exactly to the green area but still, it is nice to know that Fibonacci 62% is around it because historically, Bitcoin price loves to bounce from the golden ratio price zones. Especially if Fibo is pulled from long term highs and lows. At the moment Fibo 62% pulled from 2019 low $3,128 to 2019 high ~$13800
7)! Wait for a bullish candlestick formation from the Daily timeframe. As you see from my idea post below, the strong area is discovered, the price reached it, we got a textbook bullish Engulfing and the bounce occurred.
Be patient and let the price action guide you into the trade!
SUMMARY: I think the price may fall lower or actually, I want it. Then we are technically a pretty strong area and we can search for some short-term trade opportunities. At the moment, we are middle of nowhere and trading in those levels is highly risky. To be said, if I have marked those areas, then sooner or later it has touched the marked strong areas. The current plan is simple, if you are short, it should be your possible take profit area, if you are searching for buys, then this is the area. The current idea post buy trade is triggered after you have seen a bullish Daily candlestick pattern inside the marked area! The green price zone is the keep-an-eye-on-it-area!
If it was helpful then take a second and support my effort by hitting the "LIKE" button, it is my only fee from You!
Mentioned Idea Post:
If it was helpful then take a second and support my effort by hitting the "LIKE" button, it is my only fee from You!
Best regards,
Vaido
Comment:
It dropped just a little bit earlier than expected but the red arrow peak is the green area ;)
