BITCOIN EVENING UPDATE: MINOR CORRECTION

in bitcoin •  7 years ago 

BTC 3-6 AT.JPG

Bitcoin has had a minor correction today after hitting highs of 11700 today. 11700 was and still is an important wall to break, as it has acted as resistance multiple times throughout these past month.

Since we are at 10800, I am expecting one of the three different scenarios for Bitcoin to undergo.

  1. Coincidentally the price is sitting on both EMAs on the 4-Hour, it would be ideal if the price bounced off them, completing the ascending triangle formation.

  2. The price develops support at the upper trendline around the 10000 psychological mark, and bounces.

  3. The price develops support at 9329, a known support level, and bounces off of that level just like it has recently.

If any of these take place, I will still be bullish on Bitcoin's price action. In contrast, a breakdown from the 9329 mark would make this a rising wedge play in my opinion, and the inverted head and shoulders pattern would be invalidated. There is a low chance of this situation occurring though.

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Disclaimer: (I am not a financial advisor, do your own due diligence when investing in cryptocurrencies. This is just my speculative opinion.)

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Really nice article and good analysis, looking forward to read more from you :)
Followed - upvoted - resteemed

What do you expect Bitcoin is in late 2018? It's difficult to say, but let's have a try!

Thank you!

I am expecting Bitcoin to hit 30k by September! 40k by the end of the year. Followed you as well and I like your name! lol

Yes, best name, too ;)
I'm expecting Bitcoin can reach 35k in december. Well, maybe it's possible!

Amazing

You'll notice that the chart you posted and the chart I posted depict slightly different supports. Why didn't I draw my support from the very bottom? Many traders, including myself, feel that Bitcoin over corrected and then returned to the true support. Thus why my support is where it is. If we do bounce from it once again then that would be pretty solid.

Our charts are very similar otherwise! Not criticizing your post at all, just explaining what I see.

The 9329 support was a hypothetical area where the price could hit if we broke 10k. Obviously there is a low chance of it hitting that area but I put all situations just incase any of them do occur. And yes, I do feel like Bitcoin is over-corrected as well, we are due for a bull market.

Other than that, thanks for the feedback! I do like your EW analysis as well.

Yes we should always look at all situations! Like now, bad news hits and it sends us to these lower targets. I feel we are still on track for 9300 ish. Perhaps as low as 9000 but I don't think we will break it.

Yep! There is a little wick at the low of 9400 today so we may test that support yet again. And same I think we can stay above 9k.

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great analysis. really strong resistance at 11,700

Thanks! Hopefully bitcoin pops from the EMAs and breaks that level.