BTC: STRONG Support at 11D Magenta Upper Bollinger Band

1月31日

Hi Everyone! I've been looking at MANY time frames; ranging from the 12h up to the 12-Week time frame for the past several hours. I've come to the following conclusion: We have very strong support at the Magenta Upper B-Band in the 11-Day time frame. Does this mean it's not possible to fall below the Magenta Upper B-Band? No... It's "possible" to see a quick move (shakeout) below the Magenta Upper B-Band down to the Yellow B-Band Basis. I say "quick" because I would expect the price action to bounce back up above the Magenta Upper B-Band rather quickly.

Why would I expect the price action to go back above the Magenta Upper B-Band very quickly "if" we were to fall down from the Magenta Upper B-Band with a shakeout move? The reason is because the Red Line is NOT on the verge of going down from Magenta Level 60 to justify is falling down from the Magenta Upper B-Band for a sustained period of time.

NOTE: I placed Magenta Vertical Time Lines in locations on the chart pointing out where the Red Line was on the verge of falling down from Magenta Level 60. Our Red Line is NOT on the verge of falling down from Magenta Level 60. Therefore, it's likely we are in a ranging sideways phase similar to what was seen at the locations marked with a Green Vertical Time Line.

If we were to see a shakeout, I would anticipate the price action falling down to proximity of the Yellow B-Band Basis; which is $34,627 at this writing. But then expect it to bounce back up rather quickly above the Magenta Upper B-Band. Why is this? Because the Red Line is NOT ready to "go down from" Magenta Level 60; as pointed out in the examples with the Magenta Vertical Time Lines.

1月31日

註釋

UPDATE:

Red and Blue Lines are both to high of a level at present for us to see "expansion down" in the 12-hour time frame. Could we see a potential slow move down from the White Upper B-Band in the 12-hour? Sure, that's possible since the Red Line is on the verge of falling down from White Level 70 within Phoenix Ascending in the chart below.

Also, the Red Line in the 24-hour is too high of a level to see expansion down in the 24-hour time frame.

NOTE the current levels of the Red and Blue Lines in the 8-hour time frame in the chart below. The levels are too high for the price action to fall below the basis AND REMAIN BELOW THE BASIS FOR A SUSTAINED PERIOD OF TIME. So, is it possible to see a move down to or below the Yellow B-Band Basis in the 8-hour? Sure, it's possible... However, if we were to see a move down below the Yellow B-Band Basis in the 8-hour, I would expect the price to bounce back up rather quickly since both Red and Blue Lines are NOT below Yellow Level 50 in the 8-hour time frame.

1月31日

註釋

UPDATE:

CONCLUSION:

Any moves to the downside would be rather quick and short-lived at present due to current levels of the Red Line in the 8-hour, 12-hour and 24-hour time frames. Could this change after a couple of days pass to see what level the Red and Blue Lines are in those time frames after a couple of days? Sure, it's possible.

BOTTOM LINE: It's too early to assume the price action will fall for a sustained period of time below the Yellow B-Band Basis in the 8-hour time frame. The current price of the Yellow B-Band Basis in the 8-hour is $41,930. So, we must conclude we have rather strong support at approximately $42,000 for the time being. Yes, this is subject to change after a few more 8-hour candles. Let's be patient and wait to see.