Option 1: Bearish. Sell the trend
The price after the big bearish momentum to the $ 4,000 area has been recovering to ($ 7,000) but it has done in a way that has been compressing more and in the form of a bearish flag
Entering from above is an option, the most risky but the most greedy. At the moment we do not propose it, for something like this we propose a bearish break to this flag, and we will wait for a pullback that confirms the entry in favor of the trend right where the gray box is marked on the chat. And if you realize this would form an HCH (reversal pattern) that would be the last confirmation to enter with the main objective of $ 4,000
Option 2: Bullish. Buy taking advantage of the bullish momentum
The price has formed a bearish flag, but if we see it in percentage, it has risen more than 60% in this rise, without a doubt it has taken quite a bit of strength. Perhaps enough to break that downtrend line that we have been respecting since $ 10,500
In this case we would not enter right into the downtrend line in longs! We would wait for the price to break higher to position ourselves long with a much tighter ratio and with the main objective of $ 8,150
The price after the big bearish momentum to the $ 4,000 area has been recovering to ($ 7,000) but it has done in a way that has been compressing more and in the form of a bearish flag
Entering from above is an option, the most risky but the most greedy. At the moment we do not propose it, for something like this we propose a bearish break to this flag, and we will wait for a pullback that confirms the entry in favor of the trend right where the gray box is marked on the chat. And if you realize this would form an HCH (reversal pattern) that would be the last confirmation to enter with the main objective of $ 4,000
Option 2: Bullish. Buy taking advantage of the bullish momentum
The price has formed a bearish flag, but if we see it in percentage, it has risen more than 60% in this rise, without a doubt it has taken quite a bit of strength. Perhaps enough to break that downtrend line that we have been respecting since $ 10,500
In this case we would not enter right into the downtrend line in longs! We would wait for the price to break higher to position ourselves long with a much tighter ratio and with the main objective of $ 8,150