I have created a new 2 hour chart of Bitcoin so that you can better follow the price movement by clicking on the arrow on the right side of the chart.
With the breakout of the neckline and , I see the following possible scenario happening.
A re-test of the head shoulder formation and then a decline with the next lines:
According to this analysis, the final goal of the possible decline is 30000 / 30226 USD.
After that, another analysis will follow.
Keep in mind the ALTS can fall faster than Bitcoin itself due to bitcoin dominance. Money then flows out of the ALTS back into Bitcoin .
Trying to catch bottoms can be very risky and often require day trading and constant monitoring. After the bottom at 30000 we will most likely get another rebound but everything depends on the situation at that time. I trade what I see and not what I think. Totally without or bias. Just because that doesn’t help you in trading. That is perfect for long term investors but we as traders will never sit so long in a position that can fluctuate 50% up and down.
I myself had closed all my long positions long before the neckline was broken. This was because the had been broken through but also by personal experience, you notice that the market was struggling with little . So because we had a heavy decline the possibility was already very high that it was going to be a countertrend move in a downtrend. That made it all that much more suspicious.
As long as Bitcoin doesn’t rise back above 42600 every rise remains suspicious and you have to take into account a sudden reversal.
Good luck guys and as always, trade safely with stops and use money management to make sure you’ll still be trading next year. Leverage is only for experienced traders who perfectly know what they’re doing and use good moeny management. This is my personal opinion and experience not everybody have the same idea and that is perfectly fine.
Please share your idea’s what you think of Bitcoin and very important why you think that. Then we get an interesting discussion which can imporove your own trading.
Wish you all good luck!
Disclaimer Traders this is my view, no advice to buy or sell. Also always do your own research!
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