Hi guys. I think we are at very important price levels. So i decided to share my thoughts with you. I’m gonna show you the weekly chart, monthly, 4 hour timeframe chart and bitcoin shorts chart. At the monthly chart we can see that we are overextended to the downside. There is a higher chance that we bounce up. But bounce up from where? First, let me show you the weekly chart. (I use Bitstamp chart) Other exchanges might have different prices.
BTC Weekly Price Chart
As you can see at the weekly chart, we are very close to the weekly 200 Moving Average, which often reacts as a support. We could bounce up from here or at least go sideway movement until it breaks down again. But it’s a very important level to consider. We might buy from here or go short from this level. Now, let me show the 4 h chart timeframe. I’m gonna show you both possibilities. If we break up or if we break down, from this yellow triangle on the picture bellow.
BTC 4h Price Chart
If we break to the downside, the first support is between ATL (all time lows) 3210 USD and Weekly 200 Moving Average 3186 USD (Bitstamp Exchange). The second support is between monthly 50 Moving Average at 2970 USD and 2920 USD. The next picture is showing the first target if we break to the upside.
BTC Daily Price Chart
This is the daily chart. If we break up from aprox. 3520 USD, the first resistance is at the daily 20 Moving Average Line. Currently this line is around 3730 USD. (Bitstamp price)! On the daily chart btc looks weaks. So more chance to the downside. But you have to be prepared for both breakout directions. One more thing. It’s very important. I must show you Bitcoin Shorts Charts.
This is Bitcoin Shorts Chart. It shows you have many bitcoins are in the shorting positions. (betting on the price to lower). Look at the vertical purple line on the chart. When bitcoin shorts goes to that level or higher, there is a high possibility that the whales are gonna use this to rekt high leverage shorters. To liquidate them out which can cause a pump up. So be aware of that.
Be carefull. I wish you profitable trading. All the best to you!
Disclaimer: This is not a financial advice. Trading can be very risky! Trade only a small amount of your portfolio. Always use a stop loss. Good luck!