Hello traders,
As you recall from my last analysis, I mentioned that BNB retracement can initiate Bitcoin bull run, and it is exactly what happened.
Looking at hourly chart I start to see some weakness in Bitcoin, and we may see some down trend in next few days. As much as I hate to say this, I am still somewhat bearish in Bitcoin because the volume is not as high as I remember it to be. In binance, we used to see 400 million trading volume last year, but we only see about 200 million after the breakout from yesterday, which tells me that people are still not convinced that bear market is over.
What I am seeing here in hourly chart is potential head and shoulder pattern as I don't think bears will give up $4000 psychological resistance easily to the bulls. To be honest, it makes more sense if we find support around $3775 region, as we saw confluent layer of resistance and support in this zone. I also see MACD and RSI bearish divergence in hourly chart. It is for this reason, I shorted majority of my position when it reached closed to $3990 and I am looking to get back again when it comes to $3800.
Happy trading!
As you recall from my last analysis, I mentioned that BNB retracement can initiate Bitcoin bull run, and it is exactly what happened.
Looking at hourly chart I start to see some weakness in Bitcoin, and we may see some down trend in next few days. As much as I hate to say this, I am still somewhat bearish in Bitcoin because the volume is not as high as I remember it to be. In binance, we used to see 400 million trading volume last year, but we only see about 200 million after the breakout from yesterday, which tells me that people are still not convinced that bear market is over.
What I am seeing here in hourly chart is potential head and shoulder pattern as I don't think bears will give up $4000 psychological resistance easily to the bulls. To be honest, it makes more sense if we find support around $3775 region, as we saw confluent layer of resistance and support in this zone. I also see MACD and RSI bearish divergence in hourly chart. It is for this reason, I shorted majority of my position when it reached closed to $3990 and I am looking to get back again when it comes to $3800.
Happy trading!
Comment:
haha it is happening faster than I expected!
Comment:
Pretty much what I expected.
Left shoulder: complete
Head: complete
Right shoulder: On going
I expect bearish breakout around region circled in blue.
Left shoulder: complete
Head: complete
Right shoulder: On going
I expect bearish breakout around region circled in blue.
Comment:
Right shoulder: complete
Bitcoin tested $4000 for the first time on Binance, but we saw significant rejection.
There was a wick to the downside after $4000 rejection, but there was no follow through, which indicate some strength.
I actually find it interesting that everyone was talking about potential Bart move in the previous bull flag, but no one talks about Bart move in this bull flag. So, I am actually expecting Bart move in near future.
Bitcoin tested $4000 for the first time on Binance, but we saw significant rejection.
There was a wick to the downside after $4000 rejection, but there was no follow through, which indicate some strength.
I actually find it interesting that everyone was talking about potential Bart move in the previous bull flag, but no one talks about Bart move in this bull flag. So, I am actually expecting Bart move in near future.
