Hi everyone,
Bitcoin is in a sideways consolidation structure. However, with the recent move higher, it seems to be creating a bullish breakout pattern. Where it has higher lows but no higher highs, which is often an indication for a breakout pattern. If the bullish pattern takes place I am looking for a short-term target of around 7205 before the decline can resume. I still believe that Bitcoin has a little more downside, at least the daily chart is indicating that for now. But as always things can change quickly. I have drawn 3 possible scenarios in the chart.
The first one is a more conservative possibility, we see a short-term pullback to the 50% retracement of 6400 before the initial move higher(breakout) starts. The second one is the more aggressive view without making any significant correction it directly goes from current levels higher. And the last one is the failed bullish pattern view. Markets tend to move very fast in the opposite direction when the bears dont let the bulls to take over, which can lead to a fake breakout higher and a fast reversal lower, resuming the downtrend. Due to the fact that bitcoin is still in a sideways consolidation, this scenario should also be considered. Hope this helps.
Cheers and trade with care
Disclaimer: Trading is about going with the highest probability, nobody is 100% right and we need to protect ourself in case we are wrong. That is why we need to always use a stop-loss when trading. Trade with care. This my current view, and any view present is not a trading recommendation just personal view.
Bitcoin is in a sideways consolidation structure. However, with the recent move higher, it seems to be creating a bullish breakout pattern. Where it has higher lows but no higher highs, which is often an indication for a breakout pattern. If the bullish pattern takes place I am looking for a short-term target of around 7205 before the decline can resume. I still believe that Bitcoin has a little more downside, at least the daily chart is indicating that for now. But as always things can change quickly. I have drawn 3 possible scenarios in the chart.
The first one is a more conservative possibility, we see a short-term pullback to the 50% retracement of 6400 before the initial move higher(breakout) starts. The second one is the more aggressive view without making any significant correction it directly goes from current levels higher. And the last one is the failed bullish pattern view. Markets tend to move very fast in the opposite direction when the bears dont let the bulls to take over, which can lead to a fake breakout higher and a fast reversal lower, resuming the downtrend. Due to the fact that bitcoin is still in a sideways consolidation, this scenario should also be considered. Hope this helps.
Cheers and trade with care
Disclaimer: Trading is about going with the highest probability, nobody is 100% right and we need to protect ourself in case we are wrong. That is why we need to always use a stop-loss when trading. Trade with care. This my current view, and any view present is not a trading recommendation just personal view.