Namaste to all #hive and #inleo community members. 🙏
Since my analysis of #Bitcoin about 7 days ago, there has been no significant movement in Bitcoin prices compared to the last 2 weeks. Although last week on November 1, it broke its previous swing high upwards, no major follow-up movement was seen after that.
Now what do you think, is Bitcoin preparing for a bigger move from here?
Click here to go through my previous analysis.
Important points we talked about in our previous analysis are:
- Unfortunately, It is true that conflicts and geopolitical tensions are one healthy sign for Bitcoin price for a shorter time. Because Bitcoin is considered a good safeguard against inflation.
- But another important point is that the reason for this tremendous up move is not only the Israel-Hamas war but also the instability of the banking sector and the expectation of the launch of a Bitcoin ETF (exchange-traded fund)
- From a technical point of view, there is still no sign of weakness in the price action, However, some profit booking is normal after such a big move, which is considered a healthy sign for continued strength.
Let us now take a deep dive into the Bitcoin chart and see where it could be headed in the coming days.
According to my experience in technical analysis, the price action these days may be a preparation for a larger movement that could happen in any direction. But since there is no sign of any weakness in the price action so far, it would not be wise to look for selling opportunities unless there is a proper confirmed sell signal.
Furthermore, as recently as November 1, the price broke above the previous swing high, but again no major buying was seen there, indicating some weakness from the buyer's side as well.
In the image above you can see a 1 week time frame chart of Bitcoin. The candle visible in a white ellipse shape is the candle made this week. In which you can clearly see a long upper wick which shows price rejection from the higher levels.
I have tried to indicate every important point without making the chart complicated
- First of all, from the left, after 2 weeks of intense buying, we got a swing high.
- Then after a few days of consolidation, the price finally made a new high with a breakout.
- But right after the breakout, instead of a follow-up movement, we got a confirmed shooting star candle.
- And then Bitcoin once again started trading below its previous swing high.
And with all this, looking at the price action over the last 12 days together it looks like an ascending channel pattern. In which price action is contained between upward-sloping parallel lines, which you can understand by looking at 2 yellow slopy parallel lines in the chart above.
Now let's understand the strategy to trade XAU / USD (GOLD) for the next few days.
Now that we understand price action and the #psychology of market participants to some extent, we can say that unless the price sustains outside this trend, creating any kind of large position can prove to be dangerous.
But with less volume one can trade in this range where it would be better to go with the 'Buy Low, Sell High' strategy.
My English is not very good so sometimes I use 'Google Translate'. Please don't think that anything I have written in this blog has been copied from somewhere or is AI-generated.