Chart Pattern Analysis Of Bitcoin
K3 break up and close upon K2 under low supply pressure,
It seems that the following candles will price up to test the resistance.
I don’t think this is the start of another bull run,
It is just a Wave(B) of a larger scale consolidation process.
But during this process,
Some other crypto tokens will do better.
Comment:
K1 is a first test to the resistance,
The increased volume means the supply pressure is still at high level.
If K3 close upon the resistance,
It will be a good place to buy it after the following candles retest the resistance under low volume.
If K3 failed to close upon the resistance and interrupted by higher supply pressure or sharply decreasing demands,
The following candles will likely fall back to test 62K,
It is also a good place to buy it there.
But before that,
K3 will very likely climbing up to test the resistance first.
K1 is a first test to the resistance,
The increased volume means the supply pressure is still at high level.
If K3 close upon the resistance,
It will be a good place to buy it after the following candles retest the resistance under low volume.
If K3 failed to close upon the resistance and interrupted by higher supply pressure or sharply decreasing demands,
The following candles will likely fall back to test 62K,
It is also a good place to buy it there.
But before that,
K3 will very likely climbing up to test the resistance first.
Comment:
K3 tested the resistance for a second time,
The demands increased, but still failed to close upon the line.
A good news is that the supply pressure is also decreasing.
It is a signal that the long-term market is still bullish.
If K4 close upon the resistance,
It is a good place to buy back.
If K4 successfully retest the lower price of K1,
It is still a good place to buy back.
On the other hand,
If K4 close below K2,
It will be very likely that the following candles will drop to test 60-55K area.
K3 tested the resistance for a second time,
The demands increased, but still failed to close upon the line.
A good news is that the supply pressure is also decreasing.
It is a signal that the long-term market is still bullish.
If K4 close upon the resistance,
It is a good place to buy back.
If K4 successfully retest the lower price of K1,
It is still a good place to buy back.
On the other hand,
If K4 close below K2,
It will be very likely that the following candles will drop to test 60-55K area.
K2 closed upon K1 and verified the short-term uptrend.
The supply pressure slightly increased.
It is likely that K3 will keep pricing up to test the resistance or close upon the line.
So, it is still valuable to keep at least half of the long positions in the bullish market.