Friends, foes, people of all generas, my family of crypto lovers, welcome to this oh-so fabulous, one-of-a-kind analysis on BITCOIN! Let's get it! Looking at the four hour chart, you can see that BTC has found support on the green trendline! I've just got one question. Where are all of those people who said that my green trendline was wrong? Magic looks around... I don't see 'em anywhere. Oh well. Moving on, it appears as though the inverse pattern has found at least temporary support on the EXACT level that I gave you. However, the coast isn't clear yet. There is still a lot of work that needs to be done, to turn this pattern into an earth shattering, space-bound rocket ship. First, we need to surpass the 50 EMA (in orange) which is being tested as I write this. Then, we need to get above the 200 EMA (in purple) which is just above that. The next step, and this is a big one, BTC needs to open it's wings, and confirm above the top of the pink downtrend channel. If we can do that, OMG. The next stop would be the 61.8% retrace, and then the neckline of the pattern. What we absolutely do NOT want to see, is a reversal from the averages and a break below the green trendline. That would be very negative. Now BTC is breaking above the 50 EMA. If the pattern fully materializes, and breaks out, we're going high. You see my target up there? It's chillin at about 16,475, on the 23.6% retrace. That target is only valid, IF WE ACTUALLY SEE A BREAKOUT ABOVE THE NECKLINE OF THE PATTERN. I'm not saying that's where we're going there right now. We need to see a breakout of the neckline first. 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.***
If I don't see a realistic retracement, I will leave this market. I am not going to jump into this thing just because the price is going up. That's just stupid. We should be seeing natural growth. I don't want to jump in only to have the bears pull the carpet out from my feet like they have been doing to the bulls thus far. If it's not natural growth, it will collapse again.
sharpfoam
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@rev214us, I agree, it seems to be a trap.
fiki
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@rev214us, That's the use case for a stop loss, no? It acts like a trap protection, in whatever direction. :-)
kardia
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@fiki, In Forex stop losses work great! But in crypto, I heard people say they lost a lot more than expected using a stop loss. Be careful!
Giovi6969
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@rev214us,
Stop losses work very well in some crypto exchanges (bitstamp for exemple).
You could lose money when you use stop losses of course, as cryptos are so volatile that 2 days later you sell your coins could be higher than your previous stop loss.
WinstonWolf
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@rev214us, Just set a price alarm and sell manually. Solved lol
kardia
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@WinstonWolf, Not that easy. Do you sit in front of your PC all day? I don't! When you are dealing with a market with such high volatility you can be in the negative fast. So the real solution is to wait for strong trade setups and sell at a reasonable take profit target area.
BitcoinBearSlayer
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@rev214us, The Charlie Brown and Lucy football trick comes to mind.....
kardia
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@Kwa, Exactly. I will not let these whales manipulate me. I am on to their game. I am not going to violate my trading rules. Doing so has always led to loss.