Hi friends!
The small bear flag i drew in my last analysis morphed into a larger symmetric triangle (in yellow), which is a continuation pattern. Hence, a continuation of the downtrend was to be expected and BTC broke out of this triangle to the downside a few hours ago. The bearish breakout occurred on considerably high volume, which is pretty bearish price action. My price target for this triangle breakout is in the $2730 area, as indicated by the yellow arrow.
During the last days, the difference between shorts and longs on Bitfinex was reduced from 12500 BTC to 7000 BTC. It seems that this has been sufficient for the the next leg down to materialize.
During its last bounce to $3633, BTC did not even manage to test the 200EMA (which is the 50EMA on the 4-hourly chart), which is a sign of great weakness as well.
BTC is about to break the yearly low of $3222, which should be a good shorting opportunity.
My mid-term downside target remains $2400.
Cheers,
-Znarfomat-
The small bear flag i drew in my last analysis morphed into a larger symmetric triangle (in yellow), which is a continuation pattern. Hence, a continuation of the downtrend was to be expected and BTC broke out of this triangle to the downside a few hours ago. The bearish breakout occurred on considerably high volume, which is pretty bearish price action. My price target for this triangle breakout is in the $2730 area, as indicated by the yellow arrow.
During the last days, the difference between shorts and longs on Bitfinex was reduced from 12500 BTC to 7000 BTC. It seems that this has been sufficient for the the next leg down to materialize.
During its last bounce to $3633, BTC did not even manage to test the 200EMA (which is the 50EMA on the 4-hourly chart), which is a sign of great weakness as well.
BTC is about to break the yearly low of $3222, which should be a good shorting opportunity.
My mid-term downside target remains $2400.
Cheers,
-Znarfomat-
Comment:
Sorry the yearly low was $3210 not $3222!