Bitcoin falls and we have to think about possible entry levels. Price diverged with RSI and MACD histogram and it gives us a sell signal. ADX line of DMI indicator starts falling and it shows that we will not see up movement. The level 2900.00 is the local high. We could sell below 2450.00 based on the daily chart, but good entry levels for short trades were on lower time frames. Now it's better to think about possible entry levels for long trades. The good level to buy will be at the possible reversal zone between 2000.00 and 2300.00 levels. Also MA50 (blue line) will be an additional support line for the market. Profit target for long trades will be at 2900.00 level. And one more thing, do not forget that price reversal must be confirmed by MACD histogram, RSI and possible candlestick patterns. Only after this confirmation, buy or place buy-stop orders.
P.S. If you think this information can be useful, please, like it and share. Also I will be glad to read your comments )
Excellent Analysis . Give the sitiation today we are back at 2738 It will go down to 2000 / 1800 / 1600 levels or it need to reassessed ?
DLavrov
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@Crypto-King, Bitcoin is a very interesting financial instrument. It can do anything ) But for us it's better to wait for clear signals and follow the market.
Shwifty
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Thank you for this. Simple and easy to understand.
Do you have a Twitter account?
DLavrov
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@Shwifty, I'm glad that you like it and thanks for your comment! My Twitter you can find on my page )
torjusg
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I like your analysis! A lot of bearish confirmations now!
There are a few things which I question though. One of them is how low the price is going to go. If we compare with the previous big bitcoin pump, it seems likely to me that we might see an overreaction down to 50-60% of the top when the panic hits home. Also I speculate that it will not go all the way back up to 2900, but that profits will have to be taken a bit lower than that. The second rally I don't think will go higher than 20% under the top or about 2400.
Of course, volatility is a lot lower this time than during the 2013/2014 pump, so the range we might expect could be narrower than back then. Maybe also the lower volatility is a sign that this is nothing but a massive beartrap in a superpump? What do you think?
DLavrov
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@torjusg, thanks for your great comment! I think it can be like you think. Why not? As for possible bottom - it shoul be 2000.00 level. If bears break this support level, we'll be able to see price at 1800.00 and 1600.00 levels. But we'll have just a deep correction. The main trend is upward and we'll see 3000 level and higher.