Let’s jump straight to the action, wait no, after the LIKE let’s jump into the action 😉
As You can see on the Daily chart , we are on the massive continuation pattern called “Falling Wedge”. Falling wedge will indicate further direction after the breakout from both sides but the continuation pattern will indicate that the breakout upwards is more reliable. Currently, we can’t even say that we might see a breakout upwards but we can hope that the bottom Falling Wedge trendline can be able to hold the current price above it.
Wedge bottom trendline has drawn from March 29. and the upper trendline has drawn from May 5. The projection touches also previous highs and lows from the past but those are sloppy touches but still those lines are very strong and should act nicely as a support and as a resistance.
At the moment we have got a rejection from the Wedge trendline and from the FIB Extension level 161% with the massive volume inside the daily candle. This volume was highest since 6. Feb. 2018 but is this enough to make a little pump upwards. Let’s see on the shorter timeframes:
On the 12H timeframe, You can see that we have a reversal indication candlestick pattern on the bottom – “Spinning bottom” (a good indication that it is green). This will be a small sign that we might see a little bounce but as I said on my previous updates, to make bigger assumptions based on candlesticks patterns then we want to see patterns which consist of two or three candles.
If You look left on the chart then there is a strong level at $4,320 (can’t believe that we talk so low prices). The support is marked as a black horizontal line and currently, we have got three rejections from the mentioned level.
So, another COULD-BE-A-SIGN for a small bounce to the $5k area but let’s look closer.
This chart shows us that we are stuck between the two levels. Yesterday I pointed out a support level $4,470 which should act as a strong area. The price breaks below it and now it works as a resistance. Several attempts to break back above it but those attempts were failed.
If we look this chart then we find something positive from here also – another one candle candlestick pattern called “Hammer”. The Hammer got a rejection from FIB extension 161% but sadly – yes sadly – it didn’t touch the round number $4,000. If it would have touched the round number then we could have a stronger support and we know that the $4k is touched and we may have a short-term bottom but currently, there are stupid free space between the bounce and round number, this is tiny but still stupid! It would have more powerful.
Now the last chart – 4H:
Nothing new, another “Hammer” from known bounce area but I give You a little bit precise candle close confirmation areas for either direction.
A candle close above the $4,470 and above the round number $4,500 will be a sign that we might see a bounce upwards to the $5,000.
A candle close below the Falling wedge trendline and below the daily strong area at $4,320 will guide us to the next leg downwards. The first target would be the not-touched round number $4,000 and if the candle gets a close below it then…booom $3,000-$3,500. So, watch out for that!
Summary: We collected several bullish indications from different timeframes which will indicate that we might see finally a short-term pullback upwards, the target could be $5k the volume is big because of the battle between the bulls and bears, now we need that tha bulls would win this battle and the first sign will be the 4H candle close above the $4,500 but there is still room to go lower and the down pressure is still pretty high. A candle close below the falling wedge and below the $4,320 will guide us to the unfilled area between the current rejection low point and $4k level. If You see a candle close below the $4k then prepare for the next ride downwards.
Hopefully, this breakdown helps You out a little bit to confirm Your own analysis, trade with cautious!
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Have a nice day!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
We have a confirmation from 1H timeframe where the candle got a close above the $4,500 but currently, there is the trendline which should act as a resistance.
To get confirmations from short-timeframes (lower than 4H) we have to make new HH which should change the short-term market structure from bearish to bullish, otherwise, it stays still bearish because of the market structure.
To get bigger confirmation we have to get 4H candle close above the $4,500 and from there HH is needed to remain into the bias which indicates that $4,035 was the current bottom.
Slowly gaining some power for the next attempt to break above the trendline, which should guide us to the $4,770 area but remember to watch this red counter trendline. If this breaks and we get a candle close below the round number $4,500 then this is a big statement downwards. The overall trend is down and after the counter trendline break, it should make a move down to the $4,320 area and possibly even lower than that.
NB: Again, watch this red trendline break but currently altcoins are on the green to support the next attempt to break the upper trendline!!
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Danger, danger! We have a break below the counter trendline, $4,500 and $4,470!
A quick bounce back above the round number could be pos. sign!