TLDR: Bitcoin will possibly retest $8400 before going to test the higher lows of $6k.
Trading Concept of the Day: Highs and Lows. In technical analysis , it is the overall direction of these highs and lows that constitute a trend. An uptrend is classified as a series of higher highs and higher lows, while a downtrend consists of lower lows and lower highs.
For today, I'll be discussing Higher Lows which signal an uptrend (bull).
'When in doubt, zoom out' is one of the sayings I like to tell myself when the price action gets volatile.
I'm looking at the Weekly chart and am betting on Bitcoin testing the zone around $6000 again. This will test/confirm the Weekly Higher Low. I've also marked the previous higher lows with Red Arrows with the Blue signifying where the next one will be. As always, the Volume will dictate the price action.
If you don't understand the concept of Higher Low's then look at the spots where the arrows are and see how the price goes up, then sideways before moving up. That right there is Bitcoin setting a higher consolidated low position before pushing higher.
SHORT TERM
- Bitcoin will retest $8400 which would make the right shoulder before retesting the neckline around $7200 before going down.
Additional Notes:
- Litecoin has been leading the market and will probably continue to do so until August when the halvning occurs. Watch the price action on it to see if Bitcoin mirrors it.
Trading Concept of the Day: Highs and Lows. In technical analysis , it is the overall direction of these highs and lows that constitute a trend. An uptrend is classified as a series of higher highs and higher lows, while a downtrend consists of lower lows and lower highs.
For today, I'll be discussing Higher Lows which signal an uptrend (bull).
'When in doubt, zoom out' is one of the sayings I like to tell myself when the price action gets volatile.
I'm looking at the Weekly chart and am betting on Bitcoin testing the zone around $6000 again. This will test/confirm the Weekly Higher Low. I've also marked the previous higher lows with Red Arrows with the Blue signifying where the next one will be. As always, the Volume will dictate the price action.
If you don't understand the concept of Higher Low's then look at the spots where the arrows are and see how the price goes up, then sideways before moving up. That right there is Bitcoin setting a higher consolidated low position before pushing higher.
SHORT TERM
- Bitcoin will retest $8400 which would make the right shoulder before retesting the neckline around $7200 before going down.
Additional Notes:
- Litecoin has been leading the market and will probably continue to do so until August when the halvning occurs. Watch the price action on it to see if Bitcoin mirrors it.