Hello Everyone,
Unpopular opinion but I believe Bitcoin is due for a pullback. Where? I would estimate around $43,000 to as low as $42,000. On the chart above, I have listed 3 scenarios for bitcoin. I believe scenario 2 will be the most likely as price action, RSI, current pattern, and MACD are all short term bearish.
Let's go through the scenarios:
Blue Scenario: This scenario is a healthy bullish pullback in which bitcoin has broken down from the Ascending wedge (bearish pattern) and will retest common upward trend support. This could easily keep this market going but I believe a larger pullback is more likely.
Red Scenario: This is what I believe will be the most likely scenario. A healthy bullish pullback with a bearish fakeout. This will completely destroy the bearish outlook and liquidate short positions. It will allow for a healthier bull market to continue and it finally retests major support at $42,000.
White Scenario: This is the scenario no bull wants to see. The bearish scenario. Yes, this is likely, however I do think it is the least likely of all the scenarios. However, as traders utilizing risk management, we need to take a look at this. This scenario breaks the bullish support of $42,000 and creates a head and shoulders (bearish pattern) for bitcoin. If this is validated, I believe it confirm that this 60% move up from, $32,000 to $48,000 was just an over extended relief rally.
Why do I believe there will be a pullback? Here are the technicals:
1. Price Action is bearish: We can clearly see price going up as volume is going down which is very bearish.
2. RSI breakdown and retest
3. Ascending wedge (typically a bearish pattern) breakdown.
4. MACD flipping bearish on the 12 hour and showing buying weakness on the daily.
5. Bitcoin just saw 60% increase with no pullback or consolidation.
I hope you enjoyed my analysis. I am bullish overall until $42,000 is broken but I truly believe bitcoin and alts will pullback for the reasons above.
As always, be patient, use risk management, and good luck trading.
Unpopular opinion but I believe Bitcoin is due for a pullback. Where? I would estimate around $43,000 to as low as $42,000. On the chart above, I have listed 3 scenarios for bitcoin. I believe scenario 2 will be the most likely as price action, RSI, current pattern, and MACD are all short term bearish.
Let's go through the scenarios:
Blue Scenario: This scenario is a healthy bullish pullback in which bitcoin has broken down from the Ascending wedge (bearish pattern) and will retest common upward trend support. This could easily keep this market going but I believe a larger pullback is more likely.
Red Scenario: This is what I believe will be the most likely scenario. A healthy bullish pullback with a bearish fakeout. This will completely destroy the bearish outlook and liquidate short positions. It will allow for a healthier bull market to continue and it finally retests major support at $42,000.
White Scenario: This is the scenario no bull wants to see. The bearish scenario. Yes, this is likely, however I do think it is the least likely of all the scenarios. However, as traders utilizing risk management, we need to take a look at this. This scenario breaks the bullish support of $42,000 and creates a head and shoulders (bearish pattern) for bitcoin. If this is validated, I believe it confirm that this 60% move up from, $32,000 to $48,000 was just an over extended relief rally.
Why do I believe there will be a pullback? Here are the technicals:
1. Price Action is bearish: We can clearly see price going up as volume is going down which is very bearish.
2. RSI breakdown and retest
3. Ascending wedge (typically a bearish pattern) breakdown.
4. MACD flipping bearish on the 12 hour and showing buying weakness on the daily.
5. Bitcoin just saw 60% increase with no pullback or consolidation.
I hope you enjoyed my analysis. I am bullish overall until $42,000 is broken but I truly believe bitcoin and alts will pullback for the reasons above.
As always, be patient, use risk management, and good luck trading.
Join our discord community for more reliable tools, ideas, and more!:
discord.gg/FJy8ee7SRT
Follow us on twitter: twitter.com/Roman_Trading
Watch my livestreams: www.youtube.com/channel/UCrTMgyZA0lxAa5hrCHlRLeQ
discord.gg/FJy8ee7SRT
Follow us on twitter: twitter.com/Roman_Trading
Watch my livestreams: www.youtube.com/channel/UCrTMgyZA0lxAa5hrCHlRLeQ