Looking at movement of BTC since Dec 2018 / Jan 2019, BTC started its uptrend from the lows and reached peak of around 13.8ks in Jun 2019. Since then BTC has moved in the broad triangle highlighted on chart in orange except for the period of March & April 2020 (Corona / World Lockdown Impact - Outlier).
Post hitting the peak in June 2019, BTC can be seen moving in a downward channel as well highlighted on chart as a blue parallel channel. Post 29th April 2020, BTC moved back in the orange triangle and since then has maintained a trendline of closing above the dotted yellow line. BTC has bounced atleast 7-8 times on daily charts from the yellow dotted line. Any close below and it has a risk of breaking down out from the orange triangle as well.
Another important point to be noted is that BTC is quoting below 50MA. Price below 50MA following a golden cross has seen end of rally and start of correction for BTC in past.
None of us would want to have a repeat of the scenario when BTC broke on the downside of the triangle in March 2020 but its building upto a similar situation. A bad crash could follow. For the overall market sentiments, its important that BTC doesnt give Long WICKS but has a healthy correction.
At the time of writing this BTC is quoting around 9090 and is below the yellow dotted trendline. Any close below this line is a potential short entry point.
We are already bearish on bitcoin and continue to have short positions. We will add up more if BTC closes below the yellow dotted trendline with short term targets of 8.5-8.6ks followed by 8.1ks / 7.6ks / 6.6ks.
Post hitting the peak in June 2019, BTC can be seen moving in a downward channel as well highlighted on chart as a blue parallel channel. Post 29th April 2020, BTC moved back in the orange triangle and since then has maintained a trendline of closing above the dotted yellow line. BTC has bounced atleast 7-8 times on daily charts from the yellow dotted line. Any close below and it has a risk of breaking down out from the orange triangle as well.
Another important point to be noted is that BTC is quoting below 50MA. Price below 50MA following a golden cross has seen end of rally and start of correction for BTC in past.
None of us would want to have a repeat of the scenario when BTC broke on the downside of the triangle in March 2020 but its building upto a similar situation. A bad crash could follow. For the overall market sentiments, its important that BTC doesnt give Long WICKS but has a healthy correction.
At the time of writing this BTC is quoting around 9090 and is below the yellow dotted trendline. Any close below this line is a potential short entry point.
We are already bearish on bitcoin and continue to have short positions. We will add up more if BTC closes below the yellow dotted trendline with short term targets of 8.5-8.6ks followed by 8.1ks / 7.6ks / 6.6ks.