Columnist Geoffrey’s Weekly Bit Chart View (1/14~1/20)
Last week, although Bit Coin maintained a positive trend during the beginning of the week, Bit Coin chart finished showing a sharp decline after the weekdays. In the last article, I arranged the selling point in advance and I hope you responded to the decline well.
Let’s take a look at this week’s Bit Coin status.
Above is the one-hour chart for Bit Coin. Although Bit Coin showed movements in increasing parallel channel last week, the chart broke away from volume profile of 4,070 dollars and bottom channel of 4,000 dollars. The one-hour candle showed bullish divergence in index and it is currently attempting for a slight rally on previous volume profile of 3,570 dollars.
As the chart didn’t penetrate the resistance of descending trend line, it is not in a great entry position.
For increase, there will be resistance in 3,895 dollars and volume profile resistance in 4,070 dollars and the support line is located in 3,570 dollars.
If 3,570 dollar line is broken, the support line is formed on 2,650 dollars and 2,240 dollars. Please be aware that decline amount can be greater than expected.
At this point, it is better to buy and sell after the formation of bottom line instead of predicting the bottom line. It would be safe to trade when the supporting line is placed above 3,680 dollars.
There is a possibility on formation of bottom line in short-term candle with low reliability, there is no bottom pattern in long-term candle over 12 hours.
Above is daily candle chart. If the chart rallies without breaking away from the former low point of 3,220 dollars, the double bottom line pattern can be formed in the daily candle.
Also, when settling in volume profile of 3,800 dollars, there is a room for making a positive trend.
Besides from positive prediction, there also exists great decline position. Please observe the formation of bottom line pattern in candle above 1 hour and respond accordingly.
Also, please remember that huge decline may happen when breaking away from 3,570 dollars.
Close inflection point in the market would be January 14th, 20:30 to January 15th, 09:00.
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