Hi friends! Welcome to this update analysis on Bitcoin! As you can see, the bear flag is now breaking to the downside, and wouldn't ya know, the 50 EMA (in orange) was the catalyst. =D If you recall from my last post, I said "Also, you can see that the EXTREMELY RESISTIVE 50 EMA is about to intersect with the bear flag price action. That could easily be the catalyst that sends BTC falling from the flag." If you want to step your analysis game up, you need to be able to spot catalysts like this, when you're looking at the charts. Now that BTC is breaking down, we need to assess the downside potential. To do this, I want to draw your attention to the entire breakdown move, from the symmetrical triangle. You can see that BTC formed three bear flags. Each bear flag produced a decline that was greater than the height of the prior flag's pole. In other words, each flag pole was longer than the prior flag. What that is telling us, is that (if this pattern is to continue) we can expect a decline that is greater than the current flag's pole. As you can see, I have copied the current flag pole, and pasted it to the breakdown of the flag, to give you an idea of how a breakdown equal to the current flag's pole would look. Keep in mind, though, that we're in a pattern that is producing down legs that are longer than the current flag pole, so it could be deeper. With that said, you can see that my "head & shoulders + symmetrical triangle target" has not yet been reached. Perhaps, this is the move that will finally reach the target, and the bulls can begin to work harder on forming a bottom in this market. For reference, Litecoin is the only one that actually reached my downside target, and it has had the most powerful reaction to the upside, since Tuesday's low. It seems like the market just wants to hit the MPC targets. =D Remember all of my analyses on fractals, and the fractal symmetry of the markets? It seems as though the fractal symmetry wouldn't be complete, without a full retracement to the targets. Looking at the MACD, you can see that it's starting to roll over, as it prepares for the next crossover. Volume is rapidly declining, but it may begin to pick up, if BTC starts to accelerate to the downside. Volume is going to be an interesting indicator to watch on the way down. If it's relatively light, and BTC sort-of drifts to the downside, that could be a powerful indication that the market is bottoming. Don't forget, we have a huge bullish divergence on the MACD, signaling a widespread decline in underlying sell-side momentum. Divergences like this can be a powerful indication of an impending rally, and in this case, it could be an indication of a bottom forming in the market. For now, let's keep an eye on the downside. On a more bearish note, we did just confirm the green dashed trendline as resistance, which was long-term support for this market. That, in itself, is a very negative sign.
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-
评论
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LTC appears to be breaking out, above the downtrend channel! More on this as it develops.
I’ve been buying eth during the dips (or what I thought were dips, lol), I’m basically at break even now. Should I sell to buy more on this next dip?
Can I get an upvote so I can get in chat?
SaintDank
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excellent ta i expect price to stabilize around 4500-5k please like this comment so i can access chat
KISStheProfit
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With volumes decreasing, is it a major cooperated pump, since I see from the comments that it happened same second on every exchange? Bit Bot and kartel of exchanges? Do you see that all negative news are supressed somehow and good news from the senate repeated every day stressing the Bitcoin and ETH are loved? Asian market seems not very active and all comes from the US market? What is going on? Or I have wrong observation?
armf
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@KISStheProfit, this is exactly my thinking/fear. Todays growth does NOT feel genuine. I keep searching for some understanding on the validity of this increase while volume is truly tanking, and the news is at best flat. It seems the only explanation is either "well it has got to go up at some point" or my favorite "the whales control everything".
NoCode326
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@KISStheProfit, its called deep pockets are buying. Novagratz just raised $250 million for Galaxy, a crpytobank. He was an important player in keeping the price above 6k. Keep shorting boys, you eventually will get crushed by the real money.
NoCode326
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@NoCode326, and deep pockets may wait for the plebs to panic when the shorts try to push BTC back down. The floor is $5775, mark my words. Research the big money. You will see.
tanitaeva
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@KISStheProfit, you are not the only one wondering about that and this would not be tbe first or last it happened.
satoshinakamoto2020
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@KISStheProfit, asia is celebrating chinese new year.... pls up vote i want to chat :-)
luisrobinsongarcia
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Just as a comment. . People are so quick to react and call out others work. You dont like his opinions then dont read them . But i could bet .5 BTC that many of you criticizing did in fact either made or saved money with his views . I dont know the guy , but one thing is for sure 9.9 out of 10 he gets it right. Go back and read his previous posts. The green dotted line needs to be crossed. And I dont think he meant barely crossed. I dont see it being crossed. These posts are for educational purposes not financial advise.
Can I get an upvote so I can get in chat?