BitcoinLong
BTC/USD: detailed chart breakdown. Correction before drop?
Looking at the DAILY timeframe chart, we can see some interesting things going on. Let's break it down to small steps, analyse each move, and see what the near future holds for BITCOIN.
After having left a huge wick to the downside and rejected the crucial area of support that can be illustrated on the WEEKLY timeframe graph, the price has been consolidating in a rectangular box for quite a while. We all know that after consolidations, an impulsive move takes place. But how can we predict the direction of that impulsive move that is cooking up? Will it be bullish or bearish?
On the 5th of May, a juicy bearish candle was able to break the lower barrier of the ascending channel and push the price all the way down till 25.5k. As textbooks state: after an impulsive move, a correctional move must take place. This gives us enough confidence that the price will break the upper boundary of the rectangular range and reach the zone of previous support later turned resistance indicated on the graph.
To add another confluence, we have used the Fibonacci retracement tool on the Weekly timeframe chart, and have identified that the 50% Fibonacci retracement level perfectly lines up with the zone that we are targeting.
After the price reaches the predetermined level, we will most likely be looking for short positions, as our bias remains bearish so far.
After having left a huge wick to the downside and rejected the crucial area of support that can be illustrated on the WEEKLY timeframe graph, the price has been consolidating in a rectangular box for quite a while. We all know that after consolidations, an impulsive move takes place. But how can we predict the direction of that impulsive move that is cooking up? Will it be bullish or bearish?
On the 5th of May, a juicy bearish candle was able to break the lower barrier of the ascending channel and push the price all the way down till 25.5k. As textbooks state: after an impulsive move, a correctional move must take place. This gives us enough confidence that the price will break the upper boundary of the rectangular range and reach the zone of previous support later turned resistance indicated on the graph.
To add another confluence, we have used the Fibonacci retracement tool on the Weekly timeframe chart, and have identified that the 50% Fibonacci retracement level perfectly lines up with the zone that we are targeting.
After the price reaches the predetermined level, we will most likely be looking for short positions, as our bias remains bearish so far.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.