Good morning traders!
What a move on Bitcoin
last night after I posted my analysis. Bitcoin
is struggling to hold the 200MA right now, so the battle is not over. Over $400 million worth of shorts were liquidated last night as they had continued to rise in the face of the bitcoin
Do you remember the magnet? It took a while to get to $5,000... but damn it, we did it!
Okay, let's get serious!
The sell volume
has not been that big yet though as we start our ascent.
It looks like the ascending triangle
played out exactly after our 10/20 MA cross on the weekly. We also got the volume
that we were looking for!
Our first target was the 200MA and the .618 pull back from the downward move. Why the 61.8%? If you read my previous analysis, I explained in great detail how Bitcoin
LOOOOOVES the 61.8% fibonacci level.
The question is, where do we go from here?
If you were long Bitcoin
, then you should be well in the money. If you watched my live stream last night, I sold some off at $5100 and am looking for a new place to buy.
I don't think we'll get a bart down based on the volume
confirming the move, but anything is possible with Bitcoin
I am, however, seeing an interesting fractal
pattern play out here.
If you recall my mirror, mirror analysis where we took Bitcoin
and flipped it upside down, you'll see that our first target at the .618 was almost hit. We tagged the 50% fibonacci level and are consolidating right now.
follows what it did after it broke the $6k support level
and impulses, consolidates and impulse for an ABC
type of pattern, we could see another move to the $5600-$5800 level like this. (also known as a fractal
, although I hate using that word.)
It definitely has the volume
to confirm the validity of the move.
If you're not in a trade, where do we enter? (Look to the fibonacci levels for this answer.) If I had to guess, we'll probably see some sort of a bullish
consolidation pattern form around the .236 as a pivot
(flag/pennant/triangle) kind of like this.
Ideally, we can get long around the $4700 level if we're not already in the trade. The most important thing to keep note of is we hold the 200MA on the daily closing. If we don't hold that, then I would expect us to drop through back to retest the $4,200 level as the previous support.
So far, so good though!
What do you guys think? Are you bearish
after this big move?