What does July monthly candle close means? What will happen for the next couple months heading into 2020? How do you take advantage of this information?
Thesis: Consolidation period in August and September. Mark up begins in October, creating the high of 2019, but not breaking above BTC All Time High.
Reasons:
1) Key Monthly Level - 9900 (July candle retested that level as support)
2) Monthly Inside bar candle formation (Suggests consolidation before upside)
Key levels:
1) 3rd Quarter Open - 10700
2) Monthly Mid Range - 10650
Establishing bias:
- If weekly candle closes above the mentioned 2 key levels, consolidation will occur at the top 50% of range. (Extreme bullish)
- If weekly candle closes below, consolidation will occur at bottom 50% of range. (Bullish)
If you are currently in cash and look to enter the market from the sideline (like me), i will recommend buying BTC at different levels.
Key buy zones:
1) 20% - Green Zone - 9800 to 9600 (H4 Pivot - Acted as both support and resistance previously)
2) 45% - Daily Range low - 9350 (Daily Demand zone - Acted as support twice)
3) 25% - Green line - 9050 (Bottom 75% of Monthly Range + Untested 100 Daily Moving Average and Exponential Moving Average + Liquidity pool)
* 4) 10% - Mentioned grey box - 8000 (Weekly Demand zone) * - Unlikely and does not show the strength of BTC as Daily candles will close below Key Moving Averages
* 5) 100% - Monthly Mid Range - 10650 (Only if weekly bullish criteria is met) *
Thesis: Consolidation period in August and September. Mark up begins in October, creating the high of 2019, but not breaking above BTC All Time High.
Reasons:
1) Key Monthly Level - 9900 (July candle retested that level as support)
2) Monthly Inside bar candle formation (Suggests consolidation before upside)
Key levels:
1) 3rd Quarter Open - 10700
2) Monthly Mid Range - 10650
Establishing bias:
- If weekly candle closes above the mentioned 2 key levels, consolidation will occur at the top 50% of range. (Extreme bullish)
- If weekly candle closes below, consolidation will occur at bottom 50% of range. (Bullish)
If you are currently in cash and look to enter the market from the sideline (like me), i will recommend buying BTC at different levels.
Key buy zones:
1) 20% - Green Zone - 9800 to 9600 (H4 Pivot - Acted as both support and resistance previously)
2) 45% - Daily Range low - 9350 (Daily Demand zone - Acted as support twice)
3) 25% - Green line - 9050 (Bottom 75% of Monthly Range + Untested 100 Daily Moving Average and Exponential Moving Average + Liquidity pool)
* 4) 10% - Mentioned grey box - 8000 (Weekly Demand zone) * - Unlikely and does not show the strength of BTC as Daily candles will close below Key Moving Averages
* 5) 100% - Monthly Mid Range - 10650 (Only if weekly bullish criteria is met) *
I do not want to see weekly candle closing below these 2 key levels now that we got back above, it should become support.