Bitcoin analysis April 5: Bear flag clearly formed

Last time we predicted exactly the zone to sell (blue arrow). After reaching the 7400 zone with the 50 EMA standing right there, Bitcoin hesitated for a few candles and fell to the botom of the big bear flag forming since March 26. This bear flag has a target of 4700-5100, and this is also a strong support zone. However, if Bitcoin breaks down from here, this also means that the neckline of the giant head and shoulder on D1 pattern is lost:

If this really happens, Bitcoin is possible to fall way down to the 3100 zone which is backed by a strong support zone and the up trendline that connects the lows from September 2016 to May 2017, see below:

Back to the H4, we see that both 200 and 50 EMA are leaning downwards, indicating strong bearish price action. MACD has just formed a bearish crossover and crossed below 0 level. Today we still wait to sell from the resistance above.

Enjoy trading!

N.H.

Comment:

falling down perfectly after reaching our sell zone.