Bitcoin rejected at 161.8 extension, RSI fails to confirm new highs

in bitcoin •  7 years ago  (edited)

Bitcoin has sold off from record highs after encountering key resistance confluence at 6200. 4 Hour RSI failed to confirm the new highs and the combination of the long term channel top and key fib extension was just too much:

Pair is currently trading at 5750 from as low as 5700, completely negating Friday's breakout. Further weakness would target the next support zone in the 5450-5530 zone. A break below 5450 would risk a flat/near-flat correction towards 5100.

We need a 4 hour close back above 5920 to shift focus back to the top side.

Update - As per the comments section, pair seems to have found support on the hourly:

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Good explanations

I had to read this over multiple times before I understood (ahah im a beginner to analysis).
Do you think people oversold at the break? And when you say a 4 hour term what does that mean?

Hey Cheech, sorry this post was a little wonky.

I think it is getting harder and harder for the pair to find willing buyers as it goes up.

This is a 4 hour chart so each candle represents 4 hours of time. When I say "4 Hour RSI failed to confirm the new highs" - do you see the little chart down the bottom? That is RSI, the Relative Strength Index.

Do you see how that indicator shows a lower high even though price made a new record high? Generally speaking, in a healthy bullish market, they both would have made new highs together.

I see it now, very informative. Definitely going to educate myself using your posts, atleast ill familiarise myself with the terminology. It was well written mate 😃

Thanks Cheech - give me a shout whenever something is unclear. I usually try to keep them less wonky, but it is difficult sometimes.

Great analysis again thank you. As you mentioned, the correction started already. Not sure what to expect now : a reversal trend with BTC dropping below supports line or just a retracement and BTC following its bullish trend to go back to the top resistance line.
It's hard to say especially now with this crazy market lol
Happy trading =)

Yeah exactly, things have been mad this past week - pair seems to be finding a bid now on the hourly - see if 57 holds:

I think this is just a little hiccup and everything should be OK. If 57 does go, I expect 5450 to hold.

Agree with you =). Will see my friend

Agreed. This soon before the hard fork its unlikely to go downhill.

i think BTC can go to the channel botton

The channel bottom or the mid-point? The channel bottom isn't until 4100. Doubt we see that again any time soon.

i think the bottom ... now beggining good times for heavy moves....

:)

Hahahaha I hope you're wrong!

If it flash-crashed there right now and stayed there til 9am Sydney, I'd owe my broker $4000 USD.

what do you think about DECENT DCT/BTC?...

@bulleth Hello my familiar . I've studied your other sharing. You are a really accomplished person. I have not read this share yet, but I am sure it is a perfect and accomplished sharing. (Upvote resteem). I will try to comment on every share. good day for now :)

This post received a 20% vote by @mrsquiggle courtesy of @scooter77 from the Minnow Support Project ( @minnowsupport ). Join us in Discord.

Upvoting this comment will help support @minnowsupport.

Awwww shucks, thanks @scooter77

After such a big move, some consolidation is normal....I look at the top chart and see that huge green candle from a few days ago...that extended things quickly.

It pulled back to the zone of previous resistance....will it hold? If it does, we might be it blast through the 6200....

Profit taking made a lot of sense at around the 6000 range.

Yeah I'm kind of stuck because I'm trading with a CFD broker so they are shut, other wise I prop would of taken half at 62 yesterday.

And yeah looking at volume, this sell off don't have much in it compared to that big green one.

What is your intuition telling you. Major pullback by breaking down through support or do you think the bulls are still in charge and this is just a breather.

To me, it doesnt "feel" like a trend reversal....just profit taking after a big move up.

  ·  7 years ago (edited)

IMO it looked real nasty before on the 4H and Daily, but 4H will look good if this candle closes higher, which would make the daily look a lot better too. My gut says this wedge breaks higher not lower:

I think you're right and this doesn't feel like a reversal - false breaks -> reversals tend to be much more violent and decisive!

Especially reversals to the downside....to the upside they tend to be slower...but a top tends to see a hard and sudden movement south.

Yep, this BS is ongoing, but the lack of speed suggests consolidation rather carnage. Potential bull flag on the hourly:

Not sure if you are based in the US or not, but if not, you should have a crack in my demo trading/investing comp

G'day. Can I make a useful suggestion?

Everytime I see Bitcoin declining in a chart I do 2 things.

  1. Minimise the chart so it's too small to see.
  2. Switch from USD to AUD (BTC is about $7.500 AU right now)

This generally fixes the problem. Then I just wait until it heads back up again and complain that I didn't buy more in the last dip!

So just....... DIP & HODL & LOL.

Hahahaha great idea - but I'm trading with 20:1 leverage so it's not quite that simple!

Nah.......I'd have to invest in a Pacemaker if I did stuff like that nowadays!

Most of my investment decisions are much smaller these days and normally my "analysis" is a good long think and a couple of beers. So far it works well.

BTC will start to crash after the fork these coming 25th. Altcoin will start rise again.

Seeing as you speak with such certainty and can obviously predict the future, I assume you'll be taking a 20:1 leveraged short position on the 25th?

@bulleth, Your contributions to our common cause have enabled me to help you with this up-vote! I very well remember that you started feeding me 1 days ago. Together, we both become stronger every day.

Yours, Spinny

I like very much when everyone who feeds me also reads my friend’s posts, so please visit @mikepicker and read what he has to say! Your name will also appear here. :-) Join my Discord server if you want to meet others: https://discord.gg/Mz2EZP3

Powered by @adsactly.