Bitcoin going to $7400 then to $14k, here is how it happens...
As a follow on from my analysis on BTC I mentioned the RSI drop and that the best buy zone was when RSI hit 30 or below. (see older analysis about RSI Indicator) We are currently still waiting for this to happen. This is when I expect the best buy zone as per the RSI analysis chart. This is indicated by the yellow rectangular box on this chart on the RSI indicator. Also on the chart itself is a yellow rectangular box where I expect BTC to drop to and then bounce up off the support in this region as shown in charts below.
However, BTC could form a bottom here to the right shoulder shown in the weekly chart below. We need to monitor the charts and wait for the breakout to which side BTC will go. BTC is currently holding the $7800 support and a break(close) below this on the daily chart shown will push BTC to that $7400 mark. However, there is room for BTC to move up and retest the EMA 10 (in blue) on the daily chart shown.
I expect at least a drop to $7600 as BTC needs to hit that RSI mark I mentioned earlier. Most likely scenario is for BTC to hit the MA 1000 (in yellow) and the 0.236 fib level @ $7400. It would be devastating for BTC to drop below these levels as it would fall below the long term log channel BTC has formed since it's inception. Around the $7400 mark is the bottom of this channel.
As per the 1 hour chart below you can see BTC is trading between the yellow and green trendlines currently. A break either side with 2 candle closes will indicate where BTC is heading in the short term. On the MACD you can see BTC is around the 0 region and a push above will let us know also if this is the bottom. A move below lets us know BTC is heading to $7400.
On this 4 hour chart we can see BTC has not yet closed above the EMA 10 and is testing support shown by purple line at $7800 but hasn't closed twice below it. MACD is showing a bullish crossover.
If we look at the Bitfinex longs chart we can see it is holding 2 support levels and I expect it to hold this level. RSI hit bottom as with MACD forming a crossover to bullish.
On this weekly chart we can see an inverted head and shoulder pattern forming but currently still not validated. We can see how strong this red horizontal line of support is that BTC is at right now being $7800. If this scenario plays out BTC will hit 14k.
Crypto greed/fear index currently in fear (17) area which could indicate the old adage, 'buy when there is blood on the streets'
I will stick to the above plan and react to the market if my plan A, B or C doesn't pan out.
Plan A: Buy @ $7400 area as mentioned. Wait for bounce up or reassess situation.
Plan B: Buy upon breakout if BTC breaks indicators mentioned on smaller timeframe charts and moves up from $7800.
Plan C: Sell everything I own if BTC drops below the log channel since it's inception.
Happy trading legends!
HTBB
However, BTC could form a bottom here to the right shoulder shown in the weekly chart below. We need to monitor the charts and wait for the breakout to which side BTC will go. BTC is currently holding the $7800 support and a break(close) below this on the daily chart shown will push BTC to that $7400 mark. However, there is room for BTC to move up and retest the EMA 10 (in blue) on the daily chart shown.
I expect at least a drop to $7600 as BTC needs to hit that RSI mark I mentioned earlier. Most likely scenario is for BTC to hit the MA 1000 (in yellow) and the 0.236 fib level @ $7400. It would be devastating for BTC to drop below these levels as it would fall below the long term log channel BTC has formed since it's inception. Around the $7400 mark is the bottom of this channel.
As per the 1 hour chart below you can see BTC is trading between the yellow and green trendlines currently. A break either side with 2 candle closes will indicate where BTC is heading in the short term. On the MACD you can see BTC is around the 0 region and a push above will let us know also if this is the bottom. A move below lets us know BTC is heading to $7400.
On this 4 hour chart we can see BTC has not yet closed above the EMA 10 and is testing support shown by purple line at $7800 but hasn't closed twice below it. MACD is showing a bullish crossover.
If we look at the Bitfinex longs chart we can see it is holding 2 support levels and I expect it to hold this level. RSI hit bottom as with MACD forming a crossover to bullish.
On this weekly chart we can see an inverted head and shoulder pattern forming but currently still not validated. We can see how strong this red horizontal line of support is that BTC is at right now being $7800. If this scenario plays out BTC will hit 14k.
Crypto greed/fear index currently in fear (17) area which could indicate the old adage, 'buy when there is blood on the streets'
I will stick to the above plan and react to the market if my plan A, B or C doesn't pan out.
Plan A: Buy @ $7400 area as mentioned. Wait for bounce up or reassess situation.
Plan B: Buy upon breakout if BTC breaks indicators mentioned on smaller timeframe charts and moves up from $7800.
Plan C: Sell everything I own if BTC drops below the log channel since it's inception.
Happy trading legends!
HTBB
相关观点
If not BTC could drop another $1200 to $6200 being the bottom of this Gaussian Channel shown on chart below. If EMA 10 crosses under MA 21 on this weekly chart below, BTC could drop even lower. If this happens, Plan C is activated.