In the past few hours, Bitcoin looks to have started to break out of a bearish pennant (red dashed lines) towards the positive side out of what looks to be an inverse head and shoulders pattern on the 1-hour chart.
If the trend continues past 51-52K, there is potential for the price to head upward to 54-55K based on retracement back upward to near the 61.8% Fibonacci extension (from the recent high near 60K) as well as based on the neckline/head length of the inverse head and shoulders pattern (yellow dotted line).
However, as I stated before, the trend looks to have formed what looks to be a bearish pennant, so there is still a good possibility of a fake out such that the price could retreat back downward and continue to plummet downward toward 42-43K.
Hence it looks like the next day should give a few good indications as to whether the price will continue BTC's demise or if a slight reprieve might be in order at least for a few days before any further paths downward.
Although there are some good divergence indicators to the positive side on the daily chart, from what I can tell it is likely too early to tell which direction the trend will head.
As always however, this is not meant as financial advice and is solely my opinion which could easily be wrong particularly during the tumultuous trends from the past few days. But please like or leave a comment if you agree or see anything differently.
If the trend continues past 51-52K, there is potential for the price to head upward to 54-55K based on retracement back upward to near the 61.8% Fibonacci extension (from the recent high near 60K) as well as based on the neckline/head length of the inverse head and shoulders pattern (yellow dotted line).
However, as I stated before, the trend looks to have formed what looks to be a bearish pennant, so there is still a good possibility of a fake out such that the price could retreat back downward and continue to plummet downward toward 42-43K.
Hence it looks like the next day should give a few good indications as to whether the price will continue BTC's demise or if a slight reprieve might be in order at least for a few days before any further paths downward.
Although there are some good divergence indicators to the positive side on the daily chart, from what I can tell it is likely too early to tell which direction the trend will head.
As always however, this is not meant as financial advice and is solely my opinion which could easily be wrong particularly during the tumultuous trends from the past few days. But please like or leave a comment if you agree or see anything differently.