Bitcoin fell sharply a few days ago, just hours after we warned of this likelihood in the last column. The fall was dramatic but stopped much sooner than I expected. I have spent the past few days looking for either a sign the fall was about to resume, or that the bull market would resume instead.
First, I note that the 2-hour chart shows a bear setup as follows:
After a long rally from the swing low, the market fell sharply upon reaching THE END OF THE 4TH SQUARE IN TIME. It found support precisely at the 2×1 Gann angle and the bottom of the 2nd square.
That support would be found there would not be a great surprise, but still, it seems “not enough” of a correction. I have been waiting for the next shoe to drop, but to date that hasn’t happened. Instead, the same 2-hour chart has a bull setup as shown below:
With a successful close above the 2nd arc it seems that the rally is likely to resume for a bit longer at least. The next resistance on this short term setup is ~ $1030.
However, there is the possibility of a trap lurking. Look at this 4 hour chart:
The pink line is the “1 line” from a pitchfork. It is very close to the (red) 1×2 Gann angle, and they are both very close to the current position of pricetime. Further, the vertical red dotted line is warning that this is a moment in time something might be expected to happen (an energetic point in time, so to speak). This is not a guarantee of anything of course. Price might successfully get through the resistance. But it could also be a trap. Caveat emptor…
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Featured image from Shutterstock.
Last modified (UTC): February 13, 2017 17:47