Hi, my name is Sean Vengan and today is the 10th of July
2017 in today’s analysis, we’re going to be looking at what I see as a potential
Bitcoin price crash the current process of the 10th of July
2017 is two thousand five hundred and nine us dollars
but I see one third of the price being wiped off bitcoin and
It’s are going to fall to about sixteen fifteen to Seventeen hundred
So let let’s have a look at the price analysis what I have for you today
So here. We are this is a chart on bitcoin
It’s a daily chart
and we’re just looking at the raw price action and
What we can see from the raw price action is that we do have a trend line going up?
So we can draw this trend line
going up here and
You can see we have three points of touch one
two and
three
now what I’m proposing is that we have a short rate here, and
We will have our stop loss placed above this top here
our entry
will be
on the breaking of this trend line and
This low over here
so we’ve predefined our risk as
this area here
now in terms of Targets I
see three targets
This is Target one
this is Target –
And this is Target free
Okay, so if we do manage to get to Target three
we can see that our risk is defined as this much and
Our reward is defined as this much, so it looks like a great trade
and we can
look at the Risk reward on that if we just
pull up the
Risk Reward
– and
Our stop is placed over here
Our our entry is here and our target is here
so that’s
Push it to here
it’s about you can see there’s about a
4.5 risk to reward Ratio
here
so let’s build a case now for saying that this area here is an area of
support
To do that what we’ll do is. We will just move these lines here just to make it nice and simple and
We will look at the bigger picture. So that’s a good bigger picture and
this is the
Historic action of Bitcoin you can see all the way backwards here
so this is a total action of bitcoin and we can see that a
Definite turning point occurred
here
At this point here which was the 25th of March
2017 and from that moment onwards we had a very bullish move all the way to this top here
So this is a significant range
So let’s measure that range and see where we are
So we go from here to here
and
We see that
six one eight
Comes to our target three area okay?
So there was our target through that purple line here and the six one eight is coming to target three
So we’ve got one area now that
We’ve identified
Let’s look at another area
The next one is a price
Extension and a price extension does this we take a point here. This is a low, and this is a high
And we see here that
The one-sixth one age area comes about here. Which is about seventeen sixteen one seven one six?
So we’ll mark that area now
So we now have to price areas
So the third area we can now look at is measuring these falls so we had a major fall over here
We had a major fall over here
if we were to measure
That same distance from this point here. Let’s see what we do so let’s first of all get that area here and
You can see it fell by this distance here
We copy that and we see Roughly
We had the same distance from there to there
So we now can use that hindsight information to project the next area here
So we’ve got the top here and you can see
We can see bang it hits our
Target three
So now we’ve got three areas
which we think
Is an area of support?
So we’ve got a price area. We’ve got fibonacci confirming that these areas are
significant
We’ve got a trendline. Which if it breaks we’re looking for it to fall
Target one
Target to
Target three we’ve defined our risk in terms of the stop loss being here the entry being here and
our targets being here
So that’s the analysis. I have for you today. I hope you’ve enjoyed it, and I hope it’s been a value to you I
Look forward to speaking to you on our next analysis. Thank you. All right now
you