Bearish Trend Continues with Potential Reversal Zone Identified
Bearish trend on BGB, an asset that has also been undergoing a strong correction since the last overall wave that affected all crypto assets. However, the volume on this asset remained quite active, which gave me an idea that it's possible they are hedging on BGB against other cryptos that experienced much higher volatility, resulting in greater losses in this bearish wave we are experiencing.
With that said, my view focuses on converging points, which basically consist of the target of the double bottom pattern on the H1 chart, the 61.8% Fibonacci retracement on the H1 chart, and on a more weekly or daily chart, we can see an uptrend trendline converging to the same point mentioned above. Combined with weak indicators such as OBV and Stochastic, the asset continues its bearish trend with no possibility of operations on the upside leg.
Upon reaching the convergence point, roughly between 1.045 and 1.600, I await a possible price resistance signal, and the moving averages nearing this region to then look for any bullish pattern or candle that could give me an indication of a reversal to the upside. But at this moment in the medium term, there are no buying points.
For sellers, selling operations, I await the price to return to the top of the bearish channel formed on the H1 and then enter the breakdown below some candle that could signal this entry.
With that said, my view focuses on converging points, which basically consist of the target of the double bottom pattern on the H1 chart, the 61.8% Fibonacci retracement on the H1 chart, and on a more weekly or daily chart, we can see an uptrend trendline converging to the same point mentioned above. Combined with weak indicators such as OBV and Stochastic, the asset continues its bearish trend with no possibility of operations on the upside leg.
Upon reaching the convergence point, roughly between 1.045 and 1.600, I await a possible price resistance signal, and the moving averages nearing this region to then look for any bullish pattern or candle that could give me an indication of a reversal to the upside. But at this moment in the medium term, there are no buying points.
For sellers, selling operations, I await the price to return to the top of the bearish channel formed on the H1 and then enter the breakdown below some candle that could signal this entry.