Bitcoin : Assuming the parallelity, Drop and Major support
Hello all, Yesterday was a very bearish day for bitcoin. we have seen a huge move to the downside which made a lot of long got liquidated and luckily, we have moved our SL into the profit. Now, let's check the bitcoin condition, whether we are already entering the bear market or the bulls are still holding the momentum??
Looking at the chart, where I assume a parallel channel that has been established since February 13th , The price is now reaching the lower line of the channel which acts as a support trend line during this parallelity. And another alignment can be met when you see that the price is still trending in the area of the major support (white). However, this area was a broken resistance before and it's now become a support. This could be the 2nd phase of our break out strategy.
On the break out strategy, A phase 2 is always becoming the perfect condition to enter the trade whenever we get confirmation. There is a possibility of the price to have bounce to the golden pocket region which has an alignment with the upper line of the channel. And when the price has reached this region, we will know very soon where the price will head in the future.
For now, let's enjoy our previous profit from long position first until we get further confirmation from bitcoin.
Looking at the chart, where I assume a parallel channel that has been established since February 13th , The price is now reaching the lower line of the channel which acts as a support trend line during this parallelity. And another alignment can be met when you see that the price is still trending in the area of the major support (white). However, this area was a broken resistance before and it's now become a support. This could be the 2nd phase of our break out strategy.
On the break out strategy, A phase 2 is always becoming the perfect condition to enter the trade whenever we get confirmation. There is a possibility of the price to have bounce to the golden pocket region which has an alignment with the upper line of the channel. And when the price has reached this region, we will know very soon where the price will head in the future.
For now, let's enjoy our previous profit from long position first until we get further confirmation from bitcoin.
Comment:
It looks like that the bulls has lost a lot of strength at this point. The price has made an action to test the median line of the channel but, once again it has the correction not even close to the median line. The .382 fib level is acting as a significant resistance right now.
Clear sign that the bulls are losing strength is the last wick that occur in the last 2 hours time frame. It touched the $9500 region. This shows us that there is a potential moves toward the interim swing low at around $9289 region.