Welcome back to another short-term analysis of Bitcoin! It appears that my area of consolidation marked by the orange rectangle has had Bitcoin hovering around it while we wait to see what happens.
A bear flag has formed that looks to have a downside target of my yellow resistance/support line (~$6100). It will be interesting to see how this plays out in the short term because the green uptrend line has been a massive support for Bitcoin for a long time. If this green line is not able to hold until Saturday evening there is a chance that Bitcoin will be seeing under $6000 by the end of this weekend. If the green line does not hold I think that shorting would not be a bad option until it hits $6000.
*Remember, I am not a financial adviser and anything that you do is at your own discretion. I am merely giving you my analysis along with my strategy*
Thank you for reading and best of luck trading!
A bear flag has formed that looks to have a downside target of my yellow resistance/support line (~$6100). It will be interesting to see how this plays out in the short term because the green uptrend line has been a massive support for Bitcoin for a long time. If this green line is not able to hold until Saturday evening there is a chance that Bitcoin will be seeing under $6000 by the end of this weekend. If the green line does not hold I think that shorting would not be a bad option until it hits $6000.
*Remember, I am not a financial adviser and anything that you do is at your own discretion. I am merely giving you my analysis along with my strategy*
Thank you for reading and best of luck trading!
Comment:
Update:
Things are going almost exactly according to how I forecasted them to.
1. The green bull flag broke down, almost exactly where I thought it would.
2. the bigger (not super substantial, 1H time frame) bear flag broke down EXACTLY where I thought it would.
3. The bear flag breakdown was slowed by the green uptrend line which has been very strong support, zoom out and look at it.
If you look at the price action, MACD and RSI it validates that things should be going down to ~$6K unless there is some divine intervention by the whalegods or bullgods. Once we hit the $6K target I will take a zoom out and look at the bigger picture to see where it looks like we may be going.
Things are going almost exactly according to how I forecasted them to.
1. The green bull flag broke down, almost exactly where I thought it would.
2. the bigger (not super substantial, 1H time frame) bear flag broke down EXACTLY where I thought it would.
3. The bear flag breakdown was slowed by the green uptrend line which has been very strong support, zoom out and look at it.
If you look at the price action, MACD and RSI it validates that things should be going down to ~$6K unless there is some divine intervention by the whalegods or bullgods. Once we hit the $6K target I will take a zoom out and look at the bigger picture to see where it looks like we may be going.
I'd like to point out that on the MACD for the 4H chart there is a squeeze towards under the signal line. This could squeeze could lead to a reversal pattern near the end of the month. It will definitely be interesting to see what happens, this squeeze has been happening since the huge bull run to the ATH in December.