Bitcoin charts are starting to paint a story, if you have seen my videos or read my post you know I'm a big fan of using geometry in charts, this only means that I'm trying to apply certain techniques that have been working for me over and over, this doesn't mean I'm right because as any other novice trader I'm just learning with time and recently started to be right on my trades just because I'm following certain patterns and rules that I have been establishing and modifying for my trade setups.
This is the one hour chart after that huge pump that happen on october 25, to me this seems to be pure manipulation of the market and probably just a squeeze to rekt all traders shorting Bitcoin under $7400ish and this kind of squeeze is totally logical but you just cant predict them, you know its coming but you dont know exactly when, to me this doesnt look like a consolidation face anymore this is starting to look just like another descending triangle on the 1 hour chart.
On my previous post I wrote my short term bearish and bullish scenario and said I didnt know where the price was going and needed more data
link here: https://steempeak.com/blog/@cryptoxicate/where-is-bitcoin-price-going
but after a couple of days I think the price action is becoming clear, its moving to the downside but I still need confirmation, RSI is very low but that doesnt means price will pump, most likely what Im expecting is a move up to $9200ish thats the top of the triangle and then move down probably trying to retest the previous resistance range from $8500 to $8800, Im looking to take a short position at $9200 with a stop loss close to $9500 may even trade it manually, let me show you my daily and 4 hour chart too so then I can least my reasons for this short trade.
1 Day Chart (Daily)
Sweet Baby Jesus, FIB retracement 0.5 and 0.618 fit perfectly with the previous resistance range during that sideways trading just before the pump
Price starting to form a bottom at $9075ish but not making any new higher high, if this continues means its retesting the bottom of a triangle and not creating a symmetrical or ascending triangle, instead is the infamous descending triangle, other oscillators are pointing down too like RSI and MACD, remember this are not defining indicators since they lag compare to price action, volume is very low and probably the 20 EMA will be rejected to cross the 200 EMA.
4 Hour Chart
Same story as the Daily but I think here is the meat and potatoes of this story, on the 4 hour is more clear that a retest to the previous resistance range is imminent at least at the moment of this post
The question in place is, will the old resistance become new support, it better because if that range doesnt hold and Bitcoin retest the sub $7700 area the market will enter in panic and will just drop it like is hot, price would even go into previous support area of $5600, this last part is a BIG IF, but as always I could be wrong and tomorrow Bitcoin go to the moon.
Until now I stay by my theory that this still looks bearish, this pump doesnt look organic at all that's obvious but when looking at the Daily chart price is about to start trading under the bottom of previous macro descending triangle from $13900 to $9100. It is true that there are good news for Bitcoin coming out every day and Bakkt is increasing its volume but this is just whales and savage traders playing back and forward, but now real or continues volume keep coming into the market meaning probably no new money going in, I still think a dump before the halving will happen something that will shake a ton of people so whales and refil their bags and then price will start going up when the halving go into the massive media and every day average people start buying Bitcoin and companies fomo into it.
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