Welcome, friends, to this update analysis on Bitcoin! Let's jump right in! Looking at the four hour BTC chart, we can see that a breakdown from the bear flag has occurred, and BTC is now falling straight to the very important uptrend support level (green dashes.) This rising support level is important, because it originates at the beginning of the rally, which sent BTC to the all time high. Therefore, a break of the green dashed trendline, would signal a longer term trend reversal, and it could have a very negative psychological impact on BTCs long term holders. I do think BTC could catch a bounce off of that level. I'm sure there are plenty of buyers out there, who have noticed this simple rising trendline, and have placed buy orders around $8,600. As you can see, the trendline also corresponds with the 78.6% retrace, which increases the support of that level. You can see that the current candle is already trying to form a small hammer, as buy orders begin to execute. The question is, will it actually hold? I'm not so sure that it will. Based on my last post, "Bitcoin Sets Up For 100% Retrace — Fractal Mastery," you probably realize that I value fractal relationships over trendlines. However, I will always wait to see what happens, before actually placing a trade. Confirmation evidence, is the key to success in this game. It is entirely possible, that BTC catches support off of the rising green trendline and rockets to the moon. However, that doesn't align with the overall technical picture of this chart, or the fractal implications of the patterns it contains. Undoubtedly, it is an important level to watch. If the green dotted trendline falls, panic selling will most likely consume BTC, and the entire crypto space in general. As I stated earlier, buy orders are sitting just above the green trendline, but sell orders (probably a massive amount of them) await below. If the green dashed trendline falls, the bottom of the downtrend channel, and my long awaited, heavily criticized downside target (around $5,650) will be in BTCs sights. Watch the green dashed trendline. It's do-or-die.
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.***
@mattwhite23, go back and have a look at bitcoin when it was $100 and what happened once it reached $1000. It actually went back down to $100 before ending up at 20k. Im not saying it will be as bad as this(possibly if tether fails?True or not who knows?). I think poop is correct here with 5650 coming in to play, but it won't happen yet imo. Late Feb early March i would think.
housepro
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@mikey26, It seems like once something is mentioned enough times (like us going to 5650), the event happens much quicker than in a month or two. I say it will happen within 2 weeks or less given all the talk about it. Everything with Crypto seems to be compressed on timelines.
EduardoCantelli
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If you are here and you do not believe in the system, you do not understand the system, so you should speculate elsewhere. The child is being born and the parents have no experience. But remember it is a new being, most likely a savior. Know this, be calm. Either you will lose a little money, or you will help change the world. And still enrich. Greed and fear will always exist, focus on something greater.
Doctor, psychoanalyst at your service.
Pleccy
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@EduardoCantelli, you responding to me? If so: because the child is new and the parents have no experience, the parents are the ones who don't believe and are not calm. We as individual traders have no influence on this game whatsoever. We see that the last months governments are taking control more and more, restricting free trading. So it's not a matter of us "believing in the system", because the system is being controlled more and more by forces greater than we. It's not a free market anymore, and I don't think it will be anymore. Maybe BTC value will rise again at some point, but not with the big volalility of the last months. So especially for small individual traders there won't be as much to win as before. I am not an investor, but a trader, so I'm not emotionally involved with BTC value, therefore I am calm :-)
mishima1992
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@Pleccy, I think he doesn’t. he wrote this an hour ago, and your comment is 41 mins ago