Welcome friends, to this quick update analysis on BITCOIN! I'm charting from my hotel room this morning, and I'm traveling today, so I have to make this quick. You can see that BTC has broken out above all of the immediate overhead resistance, after surpassing the neckline of the inverse head and shoulders pattern. You can see that BTC has rallied up just below the 200 EMA (in purple,) and now appears to be forming a bullish consolidation. I've drawn a bull flag over the current formation, so that you can watch to see how it performs. If it breaks to the upside, the 200 EMA will be immediate resistance, but the height of the flag pole suggests a potential continuation toward the top of the downtrend channel. If this pattern breaks down, however, there is a ton of support that is now below us. We have the green dashed trendline, the 50 EMA (in orange,) the 78.6% retrace, and the extension of the neckline from the inverse head and shoulders pattern. As a form of caution, I would be wary of a break of the 50 EMA in orange. It was resistance for a long time, and now BTC has finally defined it as support. If we break through that level, it wouldn't be a good sign. Good luck trading everyone!
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***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
This is crazy, we are still in the bear channel, this is BIG BULL TRAP
In early March, BTC will reach 4k.
MrRenev
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@trantu0103, We all know you want to buy cheap, but don't count on it too much.
kardia
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@MrRenev, Looks like there is strong resistance at the 200 EMA on the 4HR chart. Maybe a pullback is coming down to around 9000. What do you think?
MrRenev
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@rev214us, We also have overbought 4HR RSI. We climbed so much, a pullback is necessary. Since 6k we have been retracing to 0.382 or close to it every single time. Right now 0.382 would be at 8600 I think.
I'll buy at 9200 to make a quick buck and it might hold it's a strong level and everything, idk if we lose 9k will people start panic selling? Or does it depend where we close?
I'll look into it when I get home, but anyway whatever happens I think it doesn't hurt too much to carefuly buy on strong supports and use a tight stop loss.
kardia
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@MrRenev, I closed my trade only because I got in late (9851). I noticed some heavy dumping on Gdax. That, coupled with the strong resistance I see at the 200 EMA on the 4HR chart, is leading me to believe a pullback could be coming soon.
MrRenev
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@rev214us, How is it still going up lol? I don't see any sell wall on GDAX, this is crazy, is the volume high or low right now?
I'm still not going to risk it. WOuld have bought back in 9600 earlier as we were in an uptrend, at least take a few %, but I was at work so couldn't monitor it. Getting in NOW seems super risky.
Seriously I hope we get a pullback, this is too crazy, the harder we climb the harder we'll fall...if we fall too hard it could take a while to recover.
kardia
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@MrRenev, Could be worse: BTC went down to around 5800 right before my eyes; I had an opportunity to buy but didn't because of all the FUD surrounding BTC.
kardia
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@MrRenev, By the way, it appears the bears are selling near pivot points. The next one is at 10,400. I use the Pivots HL indicator to find them.
MrRenev
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@rev214us, Oh. Thanks. I think there's a solid resistance at 10300 so maybe that's it... It would also bring the fibo retracement at 9200 and 8600 etc only strong levels, so everything would conveniently fit in :)
kardia
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@MrRenev, The fibo is a tool I need to better learn how to use.
This is crazy, we are still in the bear channel, this is BIG BULL TRAP
In early March, BTC will reach 4k.