Step right up! Witness the wizardry composed by the ghastly shadow of the charts, the legend of legends, feast your eyes on his majesty's greatness! BITCOIN!
Hello friends! On the four hour chart, we can see that BTC has been rejected at the 50 and 200 EMAs, and is heading lower now to test the rising green dashed trendline. Believe me when I say, that is a level that the bulls do not want to lose. Having originated on 9/22/17, it has become a key level to watch. You can see that the last time it fell, BTC plummeted straight to the bottom of the downtrend channel. That's an ominous reminder of how gruesome things may become, as BTC prepares to dip it's toes in the lava. Just below the rising green trendline, is the 78.6% retrace, at about 8686.0. If BTC takes out that level as well, things could get really nasty, in the sense that it could produce a retest of the 6000 level.
We've been assessing this possible inverse head and shoulders pattern (in green,) and you can see that the current price action is still in line with the potential formation of this pattern. However, as you all know, we have been assessing the development this as a HYPOTHETICAL pattern. For educational purposes, I told you that it was wise to be in cash, as soon as BTC failed to breakout of the downtrend channel. Now, you can really see why. We're either in a full blown bearish correction, or we're forming an inverse right shoulder. You don't want to be in the market, when the technicals are mixed. But now, it's crunch time. Now, we need to see a reversal to the upside, and we need to see it quickly. I've pulled my bull mask up, exposing my face, and my bear mask is calling. If the green dashed trendline is violated, Magic will put the bear mask on faster than you can say "I love Magic."
On the flip side, a reversal and subsequent breakout of the top of the pink downtrend channel, for educational purposes, will be a buy signal. A break above the neckline of the inverse head and shoulders pattern will be a buy signal as well. Those are the conditions. This entire market depends on BTC right now. Let's see how it develops. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
評論
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To plot the green dashed trendline, connect the low of 9/22 to the low of 11/12. I know that there is a more significant low behind it, but that trendline shoots off into outer space, and the one that I have was highly reactionary through the recent major low. Take your pick. =D
-Magic-
評論
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BTC is currently printing a small hammer off of the first touch of the green trendline.
A hammer is a type of bullish reversal candlestick pattern, made up of just one candle, found in price charts of financial assets. The candle looks like a hammer, as it has a long lower wick and a short body at the top of the candlestick with little or no upper wick. In order for a candle to be a valid hammer most traders say the lower wick must be two times greater than the size of the body portion of the candle, and the body of the candle must be at the upper end of the trading range.
When you see the hammer form in a downtrend this is a sign of a potential reversal in the market as the long lower wick represents a period of trading where the sellers were initially in control but the buyers were able to reverse that control and drive prices back up to close near the high for the day, thus the short body at the top of the candle.
After seeing this chart pattern form in the market most traders will wait for the next period to open higher than the close of the previous period to confirm that the buyers are actually in control.
Two additional things that traders will look for to place more significance on the pattern are a long lower wick and an increase in volume for the time period that formed the hammer. But same time shorts still up (42.36%)
MagicPoopCannon
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To plot the green dashed trendline, connect the low of 9/22 to the low of 11/12. I know that there is a more significant low behind it, but that trendline shoots off into outer space, and the one that I have was highly reactionary through the recent major low. Take your pick. =D
-Magic-
BMasked
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@MagicPoopCannon, You heard it here folks! To the moon! Just....kidding
@MagicPoopCannon, when I draw the trend line on the dates you suggested it gives me the collapse at the end of January.
SecretCove
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Poop, I think you should take pictures of yourself with your bull and bear masks. Use them as your profile pics. Select which pic, bear or bull, depending on market conditions.
venturetrade
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@srnassar, no such thing as a bear mask he is a bear. ha!
susan4stars
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That was uncanny how the price dropped to Magic’s superimportant dashed green line, and bounced back up.
Fractals (which I had never heard of before Magic), fibs,and lines of support/resistance are awesome showing crowd psychology—but most importantly you need someone to point them out to those of us who can’t see them in the noise of the market.
I am sorry (not really) but charts like this one give me a headache - what am I supposed to look at again? How many trendlines can you guess on a chart? How many times can you cover your back by saying everything and nothing at the same time?
Everyone is different, I am more of a minimalist when it comes to a lot of things, including charts. Life's simple, all the best to everyone..
When you see the hammer form in a downtrend this is a sign of a potential reversal in the market as the long lower wick represents a period of trading where the sellers were initially in control but the buyers were able to reverse that control and drive prices back up to close near the high for the day, thus the short body at the top of the candle.
After seeing this chart pattern form in the market most traders will wait for the next period to open higher than the close of the previous period to confirm that the buyers are actually in control.
Two additional things that traders will look for to place more significance on the pattern are a long lower wick and an increase in volume for the time period that formed the hammer. But same time shorts still up (42.36%)