BITCOIN | About Current Resistance & Buying opportunities!
Hi,
To be said at first that this is not a "Short" call, it will be a suicide considering the current situation, the red box marks the resistance area. As bank analytics would like to say: We can see that the buying power MIGHT slow down. :D
It is more like a watch-out for buying at the current price levels. In this "article", I would like to point out why the current level is quite strong resistance, what we may see in the near future, and where are possible "Buying" zones on the chart to grab at least something for the long-term. Hopefully, it's gonna be helpful.
For me, the current price level is the last calculable and considerable resistance on the chart. If it goes to higher prices from here then technically, it is almost impossible to predict where it gonna rise but luckily it is not important at all because in this analysis we start to look at buying opportunities.
The remarkable resistance zone for correction stays around $25.000 and technical criteria are:
1) Channel projection -- the first point taken from 2017 April, the second one Dec. 2018, draw the trendline, copy/paste to an old all-time high (highest peak between the prementioned two points) and it shows that the current price sits perfectly under the drawn line, acting as a resistance level.
2) Fibonacci Extension 127%, known as profit-taking area, which atm acts as a resistance level.
3) Fibonacci Extension 200%, not a significant indication but good to have it around the red box which marks a strong resistance area.
If you want to know, how and from where these Fibonaccis are drawn then to the left of the like button (also click the like button ;D) is the loudspeaker icon, from there "Make it mine" and you can see it ;)
4) AB=CD equal waves -- D point, which is also the pattern completing point, stays inside the marked red box. Drawn almost from zero to 2017 ATH, and C point starts from 2018 low.
5) The next one is quite minor but still, the mid-round number $25.000 can also act as a resistance.
These are the criteria that have worked quite nicely to call out stocks mid-term highs especially when there isn't any traffic on left. Let's see, as said, this is not a short call, take it that soon we might get some possibilities to see lower prices from where we can grab some BTCs for long-term, take it as a possibility. One thing is sure, I know exactly that to buy from the current prices would be a mistake at! least! 8 times of 10, especially for short-term traders!
Okay, if the buying power MIGHT slow down then from where we can grab some BTCs.
There are two major places to do that. Firstly, the magical key level $20.000, and the second one $12.000, they both can act as a strong support level.
Let's talk a bit more in-depth about $20.000:
If the price of BTC will finally reach back to 20k, then definitely we can see a bounce from there. If it reaches back in the next week then this will stay a short-term bounce. Take quick profits after the bounce and step aside because I can see if the price comes too early back to the breakout area, especially if it has gone too far from it, then it will stay a short-term trade/bounce but still, it is an opportunity to make money. 20k becomes much stronger if BTC price will stay around current prices for a while or even better, if it goes higher from 25k, let's say 30k, then the 20k retest would be much-much stronger than in the next week or two.
Summary: retest on the next week = short-term trade from 20k, retest after touching 25k-30k will be a mid-term investment.
Support at $12.000:
On the weekly timeframe, it is actually the strongest! Historically, the price of Bitcoin has found resistance from it ~10! times. Atm it is quite unlikely that the price can reach there but we have to be ready, ANYTHING can happen. We have seen multiple times that BTC is capable to do some "stupid" moves and unusual corrections. Personally, I'm more than happy if it reaches the prementioned price, I don't believe it but at least I'm ready for it! So, keep an eye on the 12k-14k price zone, just in case!
SUMMARY: After the bull run, after the new ATH, the price of Bitcoin has reached quite a strong resistance level - avoid buying from these prices. Wait for a correction, it will come, you just have to be patient, trust me!! Keep an eye on 20k and for the unusual market situation be also ready for deeper corrections!
Regards,
Vaido
To be said at first that this is not a "Short" call, it will be a suicide considering the current situation, the red box marks the resistance area. As bank analytics would like to say: We can see that the buying power MIGHT slow down. :D
It is more like a watch-out for buying at the current price levels. In this "article", I would like to point out why the current level is quite strong resistance, what we may see in the near future, and where are possible "Buying" zones on the chart to grab at least something for the long-term. Hopefully, it's gonna be helpful.
For me, the current price level is the last calculable and considerable resistance on the chart. If it goes to higher prices from here then technically, it is almost impossible to predict where it gonna rise but luckily it is not important at all because in this analysis we start to look at buying opportunities.
The remarkable resistance zone for correction stays around $25.000 and technical criteria are:
1) Channel projection -- the first point taken from 2017 April, the second one Dec. 2018, draw the trendline, copy/paste to an old all-time high (highest peak between the prementioned two points) and it shows that the current price sits perfectly under the drawn line, acting as a resistance level.
2) Fibonacci Extension 127%, known as profit-taking area, which atm acts as a resistance level.
3) Fibonacci Extension 200%, not a significant indication but good to have it around the red box which marks a strong resistance area.
If you want to know, how and from where these Fibonaccis are drawn then to the left of the like button (also click the like button ;D) is the loudspeaker icon, from there "Make it mine" and you can see it ;)
4) AB=CD equal waves -- D point, which is also the pattern completing point, stays inside the marked red box. Drawn almost from zero to 2017 ATH, and C point starts from 2018 low.
5) The next one is quite minor but still, the mid-round number $25.000 can also act as a resistance.
These are the criteria that have worked quite nicely to call out stocks mid-term highs especially when there isn't any traffic on left. Let's see, as said, this is not a short call, take it that soon we might get some possibilities to see lower prices from where we can grab some BTCs for long-term, take it as a possibility. One thing is sure, I know exactly that to buy from the current prices would be a mistake at! least! 8 times of 10, especially for short-term traders!
Okay, if the buying power MIGHT slow down then from where we can grab some BTCs.
There are two major places to do that. Firstly, the magical key level $20.000, and the second one $12.000, they both can act as a strong support level.
Let's talk a bit more in-depth about $20.000:
If the price of BTC will finally reach back to 20k, then definitely we can see a bounce from there. If it reaches back in the next week then this will stay a short-term bounce. Take quick profits after the bounce and step aside because I can see if the price comes too early back to the breakout area, especially if it has gone too far from it, then it will stay a short-term trade/bounce but still, it is an opportunity to make money. 20k becomes much stronger if BTC price will stay around current prices for a while or even better, if it goes higher from 25k, let's say 30k, then the 20k retest would be much-much stronger than in the next week or two.
Summary: retest on the next week = short-term trade from 20k, retest after touching 25k-30k will be a mid-term investment.
Support at $12.000:
On the weekly timeframe, it is actually the strongest! Historically, the price of Bitcoin has found resistance from it ~10! times. Atm it is quite unlikely that the price can reach there but we have to be ready, ANYTHING can happen. We have seen multiple times that BTC is capable to do some "stupid" moves and unusual corrections. Personally, I'm more than happy if it reaches the prementioned price, I don't believe it but at least I'm ready for it! So, keep an eye on the 12k-14k price zone, just in case!
SUMMARY: After the bull run, after the new ATH, the price of Bitcoin has reached quite a strong resistance level - avoid buying from these prices. Wait for a correction, it will come, you just have to be patient, trust me!! Keep an eye on 20k and for the unusual market situation be also ready for deeper corrections!
Regards,
Vaido
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