Who Knew Bitcoin Could Sidestep Like That??
Well Folks.. Welcome and thank you for taking a minute or two for me to share my take on the Bitcoin sidestep-maneuver this afternoon. It certainly looked like one LOL! Anyway, I thought this would be a perfect opportunity to drop some chart-knowledge here if you are interested. This may come in handy on more occasions than you might think. So for the sake of clarity, I changed the color of the rather 'insignificant' rising green trend line, to pink, just for illustrative purposes, for now. As you look at the rising (now) Pink trend line, you'll notice how it acts as a perfect support level for BTC moving up, connecting 3 touchdowns perfectly, and then, on the 4th attempt, the price broke through the support level, but only to come back up, and actually touch to the Pink trend line again. Then after touching Pink, the price seems to gradually move away from the trendline, which has by now become a resistance line. First it was support, now it's changed into resistance.
Whenever you see price behaving in this manner around a trendline - in other words moving up along the line, then breaking below, but yet returning to it once more without breaching the line again, that is usually a clear indicator that the prevailing trend that brought the price to that point, is about to make an about turn. And depending on the angle of the preceding trend upwards, the turn could sometimes be quite dramatic. Not always, but sometimes. So, what happened next was text book chart and price behaviour, where BTC price fell from around $11,600.00 to just below $10,900.00, and then hit he first support line, causing it to bounce back upwards a little. At the very least it broke the fall (the strong blue line), as one would expect. From this point on, we would need to evaluate the next move - will the blue support level hold, and price begin it's upward journey again, or will it fall right through? The upward trend seems quite determined, so for now I'd have still to remain somewhat bullish. A little more time will reveal its' intention.
But study the pattern where the Pink support became the Pink resistance - that usually is a fairly good indicator that things may just be turning around for the moment. It could signal a short term correction, which in this case I think it might be, presenting a prefect buy opportunity as I mentioned in my previous post on 4 March. It just missed the area within the Ellipse I drew, but it was close enough in price range for me to seriously consider a buy on that specific dip. Remember I mentioned the $10,500.00 to $10,800.00 level?
So that's it folks - as I'm wrapping this up, the price just breached the first support and tried to do the same with the second one just below it. So far, it seems to be holding, but if it breaks, a move further down to around $10,500.00 won't completely be off the table. The next few hours will be quite telling.
As always, please remember this is not trading advice in any way - you should always conduct your own in-depth analysis before taking any market positions, and realize that trading is always risky. Trade safe!
Whenever you see price behaving in this manner around a trendline - in other words moving up along the line, then breaking below, but yet returning to it once more without breaching the line again, that is usually a clear indicator that the prevailing trend that brought the price to that point, is about to make an about turn. And depending on the angle of the preceding trend upwards, the turn could sometimes be quite dramatic. Not always, but sometimes. So, what happened next was text book chart and price behaviour, where BTC price fell from around $11,600.00 to just below $10,900.00, and then hit he first support line, causing it to bounce back upwards a little. At the very least it broke the fall (the strong blue line), as one would expect. From this point on, we would need to evaluate the next move - will the blue support level hold, and price begin it's upward journey again, or will it fall right through? The upward trend seems quite determined, so for now I'd have still to remain somewhat bullish. A little more time will reveal its' intention.
But study the pattern where the Pink support became the Pink resistance - that usually is a fairly good indicator that things may just be turning around for the moment. It could signal a short term correction, which in this case I think it might be, presenting a prefect buy opportunity as I mentioned in my previous post on 4 March. It just missed the area within the Ellipse I drew, but it was close enough in price range for me to seriously consider a buy on that specific dip. Remember I mentioned the $10,500.00 to $10,800.00 level?
So that's it folks - as I'm wrapping this up, the price just breached the first support and tried to do the same with the second one just below it. So far, it seems to be holding, but if it breaks, a move further down to around $10,500.00 won't completely be off the table. The next few hours will be quite telling.
As always, please remember this is not trading advice in any way - you should always conduct your own in-depth analysis before taking any market positions, and realize that trading is always risky. Trade safe!
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