As of the last sessions, BITSTAMP:BTCUSD has had quite a strong movement to the downside. What matters, now, is that this movement to the downside was not only strong, but is also correcting itself, which would be a strong confirmation signal for more downside. It is yet unclear if the "abc" correction of the movement to the downside, in the form of a running flat, is finished (flat in yellow), or it is still playing out in a bigger structure (flat in dotted pink). If it forms a small flag on the 4hr timeframe, it will go for more downside now. If, instead, it reverses to the upside, it is presumably going for the bigger flat. In both cases, more downside is certainly to be expected, on the most traded cryptocurrency, before the uptrend can resume it's trace.
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Commento
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Although it could crawl down more, and possibly all the way to the 8000 area, it has already broken the low (A) of the first downward leg of the expanding flat it has, and that is sufficient for the flat to be completed.
thanks for your TA.
Don't you think it will go down to support zone at 6000 ?
ricktor08
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WOW!!! I need to learn a LOT more!!
KeyshawnEbanks
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Hoping you're wrong and we get a nice dip further into the 9-8k range.Today is like the black friday of bitcoin, buy buy buy!
Zakir-Ahmed
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REALLY..IF IT GOES TO 16K ..IT IS NOT GONNA DROP AGAIN TO 8K...IT MAY TAKE 2K DROP AND THEN TO 20K..FIRST IT SHOULD BREAK 13.5K RESISTANCE TO GO UP AND 12K SUPPORT TO GO DOWN...
TradingClear
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@ghose12, many thanks for your comment and interest. As you have been able to witness in the last sessions, BTC indeed went to 16k first and then went for a drop afterwards, as we have forecasted. If you understand the way structure and wave patterns behave on different timeframes you can figure out why price behaves like it has behaved in this specific scenario, independently of supports and resistances.
As a matter of fact, having backtested thousands of scenarios on hundreds of financial instruments, we have found that supports and resistances are there just to be broken at any given time, and will definitely be broken sooner or later. This fact alone makes supports and resistances a very unreliable partner for traders, and the same is true for other indicators that still today, many traders solely rely on for their trading strategies, such as moving averages. We hope our analyses can be a useful support to your trading strategies.
CCBoss1000000
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@TradingClear, Besides your periodic analysis, where do you suggest for someone like me to go to fully learn about "structure and wave patterns?" Thanks!
Don't you think it will go down to support zone at 6000 ?