Good day
I woke up this morning confused about why the market reacted the way it did and wondered what the reason for this move was. After clearing my chart up and reanalyzing it all I found that this bearish flag made more sense however, it was hard to draw up prior to this move based on the fact that the previous support did not express itself clearly until now.
Bear flag: The price had been trending within the confines of this flag formation for some time before breaking out recently. The +8% move we had today may have looked like a reversal to some but in the bigger picture, this move has solidified health in the market by confirming the completion of the bearish flag breakout. The overall target of this breakout will put BTC at around $11200. This price will not be reached overnight but we could see this level briefly in the weeks to come, it may even just be a wick touch however, I do feel this level is a high possibility.
Consolidation range: We have entered into a ranged area which is determined using the fib retracement from the swing low to swing high. We could see the price hover between these levels in the days to follow before the market decides where it wants to break. My opinion, based on the fact we are currently still in a bearish trend and other indicators that add confluence, is that the price will most probably break to the downside. The ranging area as seen on the chart is between $21668 and $20246.
The most important thing to look out for in the days to come is the price action within the confines of this ranging area as it will determine the general direction of the market to follow, as a breakout to the bulls will result in an overall breakout of the long term bearish trend we have been in since November last year.
Long-term bearish trend: We have been trending downwards within this channel since November 2021 therefore this trend has built a strong level of support and resistance. The price is currently nearing this long-term resistance which could result in an overall reversal from the bear or a continuation. As is said before the price and political stance express bearish signals.
Hold on tight as a move is coming in weeks to come and I do feel that it will be nearing the predicted target.
@TradingView
I woke up this morning confused about why the market reacted the way it did and wondered what the reason for this move was. After clearing my chart up and reanalyzing it all I found that this bearish flag made more sense however, it was hard to draw up prior to this move based on the fact that the previous support did not express itself clearly until now.
Bear flag: The price had been trending within the confines of this flag formation for some time before breaking out recently. The +8% move we had today may have looked like a reversal to some but in the bigger picture, this move has solidified health in the market by confirming the completion of the bearish flag breakout. The overall target of this breakout will put BTC at around $11200. This price will not be reached overnight but we could see this level briefly in the weeks to come, it may even just be a wick touch however, I do feel this level is a high possibility.
Consolidation range: We have entered into a ranged area which is determined using the fib retracement from the swing low to swing high. We could see the price hover between these levels in the days to follow before the market decides where it wants to break. My opinion, based on the fact we are currently still in a bearish trend and other indicators that add confluence, is that the price will most probably break to the downside. The ranging area as seen on the chart is between $21668 and $20246.
The most important thing to look out for in the days to come is the price action within the confines of this ranging area as it will determine the general direction of the market to follow, as a breakout to the bulls will result in an overall breakout of the long term bearish trend we have been in since November last year.
Long-term bearish trend: We have been trending downwards within this channel since November 2021 therefore this trend has built a strong level of support and resistance. The price is currently nearing this long-term resistance which could result in an overall reversal from the bear or a continuation. As is said before the price and political stance express bearish signals.
Hold on tight as a move is coming in weeks to come and I do feel that it will be nearing the predicted target.
@TradingView