DAILY

A perfect example of a BULL TRAP triggered by yesterday’s price action; indeed, after the impressive rally seen before yesterday, the « BULLS » lost control and as mentioned in my yesterday’s analysis published in French, the BEARISH trend was still alive as the KIJUN-SEN
Had been not broken yet and which has been confirmed by the long black candle ( BEARISH ENGULFIING PATTERN) triggered by yesterday’s price action.

And now what is going on ?

RSI below 50, @ 37.34 and the LAGGING LINE far below the clouds !

Situation is pretty clear, in order to stabilize and neutralise, at least, temporary, the ongoing downside risk, the BITOIN should imperatively recover and close on a daily bais above 38’110 (cluster of Tenkan-Sen, former minor uptrend support line and level of the middle of the last big black candle ( a daily closing above 38’110 would trigger a PIERCING LINE).

A failure to do it, would put the focus to the next support around the 35’000 area, which is the weekly uptrend support line, ahead of 34’325 (January low) AND 32’950 (FEBRUARY LOW).

KEY PIVOT SUPPORT LEVEL ON A WEEKLY BASIS BEING @ 28’600 WHICH IS THE TRIGGER LEVEL OF A MAJOR DOUBLE TOP FORMATION (64’895 AND 69’000.

4 HOURS

The breakout of the cloud was clear, and radical with a long black candle which opened @ 39’500 to move down towards a intraday low of 36’520 and to close 4 hours later @ 36’920

Levels to watch on a 4 HOURS closing basis are the following :

On the downside :35’580

GRAPHIQUE 1 HEURE

Far below the clouds and the KIJUN-SEN.

Actually trying to upside breakout the Tenkan-Sen.

Caught between 35’579 in support and 36’650 in resistance.

Watch this trading range as very short term leading indicators, as an upside breakout would open the door for 37’286, 37’814 and 38’342; please take note that this kind of recovery, should be, once again, seen and considered as a corrective tactical move only (countertrend) in
A STRATEGIC BROAD BEARISH TREND .

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IRONMAN8848 – Jean-Pierre Burki