Daily Report – Bitcoin and Market Update (September 07 2020)
Weekly session closed as bearish engulfing candle formation after the uptrend and is definitely looking not the most bullish it could ever be. On the macro scale, it’s looking like a typical textbook breakout retest sequence, which is supposed to find ultimate support between 9.3-9.8k area. Very high chances 9.6-9.8k breakaway CME gap may get filled anytime soon. As I have been repeating all the past weeks, it’s worth having some bids left down there just in case. Volume profile suggests the strongest volume spike ~9.3k level. In case of squeezing over leveraged longs trying to catch falling knives and get lucky on guessing where the bottom is, this is the ultimate support I would see for bitcoin. Fundamentals and macro perspective have never been more bullish than it all is right now. It proves the dips are for buying. And that’s the dip. It doesn’t necessarily mean one should catch falling knives on 100x leveraged futures. It’s key to recognize when the bearish momentum slows down and reverses instead.
Daily is trading inside oversold area showing that MTF-HTF sellers are already exhausted yet not out of steam completely just yet. It’s definitely suggested to wait a bit more before loading up longs like there’s no tomorrow. Price is currently supported by MA100. MA200 provides support ~9200USD at this moment. Head & Shoulders formation target (easier to spot on institutional derivatives market – CME futures/options) has already been met, so it’s technically way more likely we are in the process of forming bottom than lots of further downside potential to sit comfortably in leveraged short positions. Risk/reward for shorts after 2k drop is not working in favor of sellers right now. Too late to short and still too early a bit to long.
Middaily structure is finding support around MA200 support at this very moment inside Golden Fibonacci Pocket 78.6-61.8% retracement. It’s not finding THE STRONGEST support at MA200, which may indicate there are chances for one last pull down to close CME gap, although it’s likely going to be about strong demand and sharp strong reversal with 1-4h very strong upside candle. Until then, main resistances are 11-11.1k and 11.7-11.8k. Momentum is exhausted and trading inside oversold zone, which doesn’t favor shorts at this place
MTF picture shows key 50% mid-range level to be 10950 that is directly at MA50 resistance right now. Overall local daily fluctuations look typical to non-directional movement. Lots of liquidity hunting, long-wicked candles prints the overall idea of bottom forming process lasting as we speak. It may not necessarily even be bottom perfectly at current pricing, yet recent movements are typical to near-bottom formations and price action shape. Momentum confirms lack of clean direction atm, which means it’s not fully reversed as of now. Instead of catching falling knives, make sure to wait for the bearish momentum to cool off. It’s slightly calmed already but most likely there’s some last ultimate dump to be had.
LTF is hanging below MA resistances. Local bullishness can only come after breaking out above silver MA100. Local resistances are 10700 and 11000 (MA200). Overall, no other revelations different to what’s already been mentioned above. Bitcoin has had many of such shakeout movements in the most bullish periods in its history. Now it seems it’s just another one designed exactly to scare the newbies and rookies, to shake them out, make the impression that bitcoin is dying again (LOL) by squeezing over leveraged longs to force them to close underwater positions. When they capitulate, it’s bound to reverse with fierce buying power of institutional money. Watch CME chart and #video-report channel for more insights. Also, stay tuned for biggest 100k celebration part you’ll have ever seen. It’s starting in 14 days and its’ going to be huge. Stay tuned for updates. Until then, one last reminder not to miss out on our amazing podcast episode with legendary Scott Melker, my great friend and kindest humand inspiration. How did the crash look like in 2008? What’s going to happen to global economies & financial markets? Why was Justin Timberlake doing background vocals for him? That’s all answered. Success needs your productivity and feeding the brain. Stay productive and watch/hear the podcast below on YouTube:
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