CTO’s Technical Analysis of Bitcoin: Aug 30, 2021

Watch for trading fun on the 1-hour timeframe: plenty of play inside the channels!

72-Hour Bitcoin Price Expectations

I’m waiting on the next correction to take place to see where it falls into the orange channel and the yellow descending triangle. If there is a play to be taken, such as in the examples below on the 1-hour analysis, I would use a small percentage of my portfolio and run a few manual trades.

Bitcoin Daily Chart Analysis

Daily: The orange channel is holding strong since last Thursday’s post.

I also found some interesting trades with the “New Support,” which is a descending triangle channel (yellow). I will go over these trades as part of the 1-hour section of this post.

The daily indicators are in a zig-zag movement currently. This is where trades can be picked up inside the channels until the trend changes.

Bitcoin 12-Hour Chart Analysis

In a closer inspection of the channels, we see both orange and yellow support points are holding strong.

The 12-hour indicators are zig-zagging like the dailies, but are showing more bullish sentiment.

Bitcoin 1-Hour Chart Analsysis

This view provides a great close-up of price action inside the channels.

Here is where we can see ways to play (trade) inside the channels.

Aug 28th to Present Day

• 0.4x% profit
• 1.38% profit
• 1.39% profit
• 1.41% profit

Total: 4.63%

First Green Arrow

Buy when price crosses over the top of the yellow descending triangle. This signals a possible reversal on the descending triangle. I would have sold on the opening of the red candle, fear of a fake-out and rejecting back to under the top of the yellow descending triangle for a 0.45%ish profitable/wash with fess.

Second Yellow Arrow

Price crossed over the top of the yellow descending triangle, BTC just closed a 0.45% trade a few hours ago and had 3 wicks subsequently test the top of the yellow, followed by the candle that crossed over. The wicks show that it is a weak crossover, with all that info it would be a no trade. We just wait it out to see where the next candle leads price action. Over the next 9 hours (9 candles), constantly testing the top of the yellow descending triangle. Pressure is building to burst (cross over) over the top of the yellow descending triangle.

Second Green Arrow

Buying when price crosses over the top of the yellow descending triangle. Holding through the cross under because of those 9 candles showing buying pressure gives us the confidence that price will come back. It only took 4 hours to get back to break even and 7 hours to ride the price up to a 1.38% profitable trade.

Third Green Arrow

Following a nice correction, price crossed back under the top of the yellow descending triangle. Price actions starts testing the top of yellow, showing more buying pressure. Finally, BTC crosses over. We ride it up for a 1.39% profitable trade.

Fourth Green Arrow

Another correction. Price crosses under the top of the yellow descending triangle. It also crosses under the orange channel. The bottom of the yellow descending triangle gets tested twice (wicks). Price action starts moving up but we wait till a crossover of the orange channel before buying. We don’t want to be rejected. Following the cross-over, we buy and sell on the last candle visible for a 1.41% profitable trade. Why do we sell? The tiny candle with big wicks shows indecision. There is no need to take a loss at this point: lock in the 1.41% profitable trade.