Bitcoin caught my attention today when I saw where it’s resting
Unlike the past, this guy is easier to analysis these days
No matter what instrument you trade, prices always react to support and resistance and they most likely will bounce from the previous those levels
It becomes even more probable when the bars confirm the weakness as well
Actually something like this is happening in bitcoin
It’s the hourly chart of bitcoin. The red line is previous resistance which caused the market to stall. All it means is that this line is important to the market makers otherwise the market would go higher, right?
But this timeframe is not detailed enough so I went to the lower timeframe
It’s a very interesting picture
Let’s start with the green drawing. That’s a double top!
A double top is the second failed attempt for a break and it usually causes a reversal because when the market makers notice that they can’t break a resistance, they give up hence, reversal.
There are some other stuff that we need to pay attention to
Look at the blue arrows:
Those are some other signs that the market is intending to go down
Why you may ask?? Because it’s easy to go down. The down moves are sharp and long.
It takes only one or two bars to take the market down but more bars to take it back up.
It says that the market makers are in the selling mode. Those sharks aren’t always good at hiding!
Let’s go for the last tip in the picture:
There’s a price pattern called “V” pattern
a “V” pattern is a sharp move up and a sharp move back down. It’s like: oops! I’m gonna go that way!
It’s takes a lot of cash to take the market back where it was so it’s a strong distribution sign
And when I trade them, I usually make a good profit so you have to consider it
…HOWEVER…
None of everything I said is confirmed until the red trendline is broken:
We sell only and only when the trendline is broken
And in the end, if you haven’t seen my longer term bitcoin analysis, head over to: https://steemit.com/bitcoin/@noochinoochi/a-must-see-bitcoin-analysis-bitcoin-can-t-be-easier-to-predict
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