Bitcoin : The complicated phase 2 of this break out strategy
Hello all, here I give you the detailed analysis about bitcoin and its correlation with the break out strategy. At the previous analysis, I've covered the psychology of each phases on my break out strategy basis. We can see that the price is now forming its phase 2 of current break out structure. The key level is the white trend line which previously become a strong support trend line that is broken down.
The other level that we need to see is the yellow zone which becomes the key minor level for current structure too. This zone is becoming critical because the price is perfectly treat this level as the support turning to resistance after the break out too. After yesterday's volatility which doesn't give us important validation of current price, the price is now testing the blue region which moving align with the yellow resistance level. During the phase 2 action, it will be very difficult to open any trade because there must be a lot of fake out moves which will liquidate the early taker's position. That's why we have to be aware of current condition.
At current structure, I'll put the yellow region as the key level on the micro degree while the white trend line is still becoming the most crucial level to watch. This phase 2 is still in action and that might be the phase 3 which will give us the validation of downside moves. As long as the price can't reclaim above the white support trend line, I'll still be bearish.
The other level that we need to see is the yellow zone which becomes the key minor level for current structure too. This zone is becoming critical because the price is perfectly treat this level as the support turning to resistance after the break out too. After yesterday's volatility which doesn't give us important validation of current price, the price is now testing the blue region which moving align with the yellow resistance level. During the phase 2 action, it will be very difficult to open any trade because there must be a lot of fake out moves which will liquidate the early taker's position. That's why we have to be aware of current condition.
At current structure, I'll put the yellow region as the key level on the micro degree while the white trend line is still becoming the most crucial level to watch. This phase 2 is still in action and that might be the phase 3 which will give us the validation of downside moves. As long as the price can't reclaim above the white support trend line, I'll still be bearish.
Bitcoin is trading slightly below the yellow region which I've been covering since yesterday. The price might see further consolidation moves on both higher and lower time frame.
This yellow region is much stronger than what I've anticipated lately. That's why any reaction toward this region of resistance will give a huge effect on the higher time frame. A break above will leads the price to the blue region of $11750 and getting rejected will leads to a lower region of white.