BTCUSD price moves down to consolidate before the next growth
At the 4-hours timeframe chart we can see the most relevant Bitcoin's price action.
Decrease started on 10th of July formed a small triangle which was easily broke up by bulls with insignificant volume increase. The price bounced from $9 060 to $11 160 level which equals 23.1% growth within 3 days. Rapid growth brought uncertainty and fear to market which is reflected by volume decrease, bears took power over the market.
Such price action created the second and the major triangle pattern which again was broken upward. The result was a positive mood among market players and subsequent 5 Elliott impulse growth waves. However there was no volume growth and thus the price started to crawl at the upper edge of adjusted RSI band. Once the price touched strong Fib 0.236 resistance it sharply went down to the parallel channel liquidating any potential of FOMO growth and breaking the resistance. Another band touch happened a day later, subsequent rejection created double top and closed the trap for bulls.
Currently we see a great potential of breaking parallel channel down triggering stop losses of recent longs which will result in sharp drop to $11 118 level and subsequent gradual decrease to the point (C) according to ABC Elliot corrective waves which is near to Fib 0.5 major support level. The forecast is enhanced by technical indicators state: we have no divergence, there is increasing volatility without tension and we are neutral according to CCI. Nevertheless we still have positive Ichi, Stoch and EMA 20 and 50 crossing.
We expect a short term decrease with a subsequent bounce from the support level. Such price action will be accompanied by a rise right to the mentioned at the chart levels.
Decrease started on 10th of July formed a small triangle which was easily broke up by bulls with insignificant volume increase. The price bounced from $9 060 to $11 160 level which equals 23.1% growth within 3 days. Rapid growth brought uncertainty and fear to market which is reflected by volume decrease, bears took power over the market.
Such price action created the second and the major triangle pattern which again was broken upward. The result was a positive mood among market players and subsequent 5 Elliott impulse growth waves. However there was no volume growth and thus the price started to crawl at the upper edge of adjusted RSI band. Once the price touched strong Fib 0.236 resistance it sharply went down to the parallel channel liquidating any potential of FOMO growth and breaking the resistance. Another band touch happened a day later, subsequent rejection created double top and closed the trap for bulls.
Currently we see a great potential of breaking parallel channel down triggering stop losses of recent longs which will result in sharp drop to $11 118 level and subsequent gradual decrease to the point (C) according to ABC Elliot corrective waves which is near to Fib 0.5 major support level. The forecast is enhanced by technical indicators state: we have no divergence, there is increasing volatility without tension and we are neutral according to CCI. Nevertheless we still have positive Ichi, Stoch and EMA 20 and 50 crossing.
We expect a short term decrease with a subsequent bounce from the support level. Such price action will be accompanied by a rise right to the mentioned at the chart levels.
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The price successfully broke down the parallel channel, however it stoped and started to move in lateral trend around the local consolidation area of $11 850 level which can be seen at mid and long-term timeframe charts.
Taking a closer look at the situation in the short-term reveals the formed triangle and the price is about to reach its corner. According to the pattern it was the last try to break $12 000 level which was rejected and currently we expect a break down of the triangle which will trigger and move our global analysis to active state
Taking a closer look at the situation in the short-term reveals the formed triangle and the price is about to reach its corner. According to the pattern it was the last try to break $12 000 level which was rejected and currently we expect a break down of the triangle which will trigger and move our global analysis to active state
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The price action followed directions which was drawn at the updated short-term chart. When it reached activation point a sharp decrease happened thus our mid and long-term analysis is active now. The reason of the sharp fall is in triggering of most stop losses of market players which decided to go long. We hope you followed our analysis and made short-term profit, keep tracking our global analysis to surf price action waves
Best regards,
SkyRock Signals team
Best regards,
SkyRock Signals team
Trade active:
In the analysis we said that there is a great potential of breaking parallel channel down triggering stop losses of recent longs which will result in sharp drop to $11 118 level. Today we hit our take profit target, the price went down to the $11 112 level where bounce happened.
We are preparing for the 2nd phase of the analysis now which should bring the price to $10 500 - $10 800 area. Before it happens we should reject bullish scenario which can result from FOMO after the bounce from the lowest support level. We will update the analysis soon.
What are your suggestions and forecasts? Participate in our competition and win prizes :)
Best regards,
SkyRock Signals team
We are preparing for the 2nd phase of the analysis now which should bring the price to $10 500 - $10 800 area. Before it happens we should reject bullish scenario which can result from FOMO after the bounce from the lowest support level. We will update the analysis soon.
What are your suggestions and forecasts? Participate in our competition and win prizes :)
Best regards,
SkyRock Signals team
Trade active:
Global analysis - Phase II
Global analysis suggest a decrease to $10 698 level while in the short term the price has been consolidating in the lateral trend for three days already in area of $11 350 - $11 450. To find out what would be the next Bitcoin price action move we studied mid-term chart.
At 12H timeframe chart it can be seen that the price action forms "higher lows" such situation transforms descending parallel channel into a narrowing corridor, which can finish as a triangle pattern. The formation confirms potential decrease and major break upward afterwards as it was stated in the Global analysis.
The price has touched upper edge of formation and confirmed a decrease to the support trend line finishing (A) and (B) moves. Hence Bitcoin's value can decrease up to $10 360 level. Nevertheless we see that between current level and lower edge of the formation there is a strong support at Fibonacci 0.5 level which is situated around $10 752. Up from this moment we have 2 different scenarios:
1. The price crawls down and bounces from Fib 0.5 till the resistance of Fib 0.236 around $12 384. According to current bull&bear power indicator there won't be enough volume and strength to overcome the resistance besides there would be very bearish pattern double top. Thus we expect a return of the price action into the triangle with subsequent consolidation to the lower edge. In this case we hold short position until $10 892 then we close it and enter long position around Fib 0.5 after the bounce is confirmed, and close it around Fib 0.236. Further steps requires a deeper analysis closer to a date of decision making.
2. The price action decreases to Fib 0.5 and penetrates the support level which causes consolidation and bounce from the lower edge of the triangle. Further the price will finish the pattern and break upward. In this case we again hold short position until $10 892 then we close it and enter short position again around $10 580 when bounce rejection is confirmed and then we follow the price action displayed at the chart
Conclusion: global analysis holds and is confirmed in the mid term chart analysis. The second scenario has a higher probability according to retrospective investigation. You can use this analysis as an orienteer for setting your orders
Global analysis suggest a decrease to $10 698 level while in the short term the price has been consolidating in the lateral trend for three days already in area of $11 350 - $11 450. To find out what would be the next Bitcoin price action move we studied mid-term chart.
At 12H timeframe chart it can be seen that the price action forms "higher lows" such situation transforms descending parallel channel into a narrowing corridor, which can finish as a triangle pattern. The formation confirms potential decrease and major break upward afterwards as it was stated in the Global analysis.
The price has touched upper edge of formation and confirmed a decrease to the support trend line finishing (A) and (B) moves. Hence Bitcoin's value can decrease up to $10 360 level. Nevertheless we see that between current level and lower edge of the formation there is a strong support at Fibonacci 0.5 level which is situated around $10 752. Up from this moment we have 2 different scenarios:
1. The price crawls down and bounces from Fib 0.5 till the resistance of Fib 0.236 around $12 384. According to current bull&bear power indicator there won't be enough volume and strength to overcome the resistance besides there would be very bearish pattern double top. Thus we expect a return of the price action into the triangle with subsequent consolidation to the lower edge. In this case we hold short position until $10 892 then we close it and enter long position around Fib 0.5 after the bounce is confirmed, and close it around Fib 0.236. Further steps requires a deeper analysis closer to a date of decision making.
2. The price action decreases to Fib 0.5 and penetrates the support level which causes consolidation and bounce from the lower edge of the triangle. Further the price will finish the pattern and break upward. In this case we again hold short position until $10 892 then we close it and enter short position again around $10 580 when bounce rejection is confirmed and then we follow the price action displayed at the chart
Conclusion: global analysis holds and is confirmed in the mid term chart analysis. The second scenario has a higher probability according to retrospective investigation. You can use this analysis as an orienteer for setting your orders
Comment:
Trade active:
Hello, Dear Subscribers!
Bitcoin price action accurately followed the forecast from the latest update. The price bounced from point (1) and moved right to the Fib 0.5 around $10 752 level right to the point (2) where it faced a great resistance of Fibonacci retracement.
As it can be seen from technical indicators at a short-term timeframes Bitcoin has low momentum power to overcome the resistance and thus the price will go a little down to consolidate and gain impulse for breaking above Fib 0.5 level. You can see direction and consolidation target area at the chart which are displayed as red arrow and puncture ray.
Further price action will replicate 5 Elliot impulse growth waves pattern in case of sufficient momentum power. Updated price action is displayed with green lines and points which correspond to the previous version of analysis. The price will reach the upper border of the triangle which is white point (3) and green point (1) subsequently moving down to the support level to naturally consolidate. Targets are displayed at the chart and are represented by an end of each Elliot wave adjusted to Fibonacci retracement level.
Currently the SkyRock Signals traders closed long position to open it around $10 380-$10 440 zone or entered a short position to maximize profits. Choose your strategy and enjoy profits
Best regards,
SkyRock Signals team
Bitcoin price action accurately followed the forecast from the latest update. The price bounced from point (1) and moved right to the Fib 0.5 around $10 752 level right to the point (2) where it faced a great resistance of Fibonacci retracement.
As it can be seen from technical indicators at a short-term timeframes Bitcoin has low momentum power to overcome the resistance and thus the price will go a little down to consolidate and gain impulse for breaking above Fib 0.5 level. You can see direction and consolidation target area at the chart which are displayed as red arrow and puncture ray.
Further price action will replicate 5 Elliot impulse growth waves pattern in case of sufficient momentum power. Updated price action is displayed with green lines and points which correspond to the previous version of analysis. The price will reach the upper border of the triangle which is white point (3) and green point (1) subsequently moving down to the support level to naturally consolidate. Targets are displayed at the chart and are represented by an end of each Elliot wave adjusted to Fibonacci retracement level.
Currently the SkyRock Signals traders closed long position to open it around $10 380-$10 440 zone or entered a short position to maximize profits. Choose your strategy and enjoy profits
Best regards,
SkyRock Signals team
Trade closed: target reached:
Urgent update
The price action replicated red arrow faster than it was expected and drawn at the chart. Thus it reached the earlier edge point of the triangle near $10 000. Further the price was not successful to consolidate and accumulate momentum at the support and afterwards it was broken at 12H and 4H.
Such scenario breaks the triangle while there is no significant defense until $9 050 - $9 300 zone. There is a high possibility for price action to test these area. If you are in long according to the analysis please hedge your position with short or close it until the trend becomes clear
The price action replicated red arrow faster than it was expected and drawn at the chart. Thus it reached the earlier edge point of the triangle near $10 000. Further the price was not successful to consolidate and accumulate momentum at the support and afterwards it was broken at 12H and 4H.
Such scenario breaks the triangle while there is no significant defense until $9 050 - $9 300 zone. There is a high possibility for price action to test these area. If you are in long according to the analysis please hedge your position with short or close it until the trend becomes clear
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Bitcoin price action accurately followed the first scenario from the recent update. However it went down much faster than it naturally should according to technical analysis and thus we have a lateral trend now. The price crawls near with the lower edge of the triangle and slowly comes right to the point where new growth wave should start.
From the point 1 displayed at the chart the price will rise up to the Fib 0.5 located around $10 752 and point 2 where a small stop will happen. The price action should have enough power according to the technical state this time, thus it will continue to rise until the upper edge of the triangle the touch should happen around point 3. Up from it moment it is more likely that we will have a gradual decrease to the point 4 which is located near Fib 0.5 which will be a powerful support zone, thus the price action will have a great impulse for the subsequent growth and triangle upward breakout. The forecasted growth will last till the price reaches $13 200 area which is above Fib 0.236.