Bitcoin Super Simple Bearish Pattern Recognition

This chart is as simple and fundamental as a chart can be. We popped out the the top of the Bollinger band in December 2017 and we popped out the top in June. Remember that 95.45% of all price action us suppose to occur within the Bands and on such a large timeframe we generally see a trend reversal. Just as before, we see some temporary support on the upper limit of the 1 st.dev Bollinger band, and I expect that to fall. I also expect the lower limit of the 1 st.dev bollinger band to act as temporary support.

MACD had a bearish cross shortly there after, and we see a incoming bearish MACD Cross

RSI dropped from over-bought, this time we could not even get overbought.

We now have hidden bearish divergence between the Money Flow Index between our two peaks, and we ust had a bearish cross as well. Expect the 50 level to provide very little support and a lot of resistance in the near future. The fact that we have such a high degree of hidden bearish divergence on the MFI it should be unsettling that the bulls could not get the RSI into overbought conditions.

It kinda looks really bad. Some of my linked posts go over the same ideas in deeper detail, this is just a simpler way of looking at the same data and coming to the same conclusion.

Comment:

If you hit the play button you will see quite clearly that we did establish temporary support on the Bollinger Band base line and we are getting our bounce out of it. No doubt you have seen lots of descending triangle posts on TV and elsewhere, lets see of that holds true in the upcoming weeks. Breaking that triangle goes a long way to negating my structure but so far, so good, everything is still going according to what the indicators were suggesting.