We havent been able to break descending resistance and started forming a Head and Shoulders formation. If BTC closes below $3500 we can see it testing $3000 again. The RSI is also confirming we are heading down. Another bearish signal is the descending triangle that we are still currently in. Everything points to BTC breaking down and testing lows
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I would set buy orders from $3200 - $2400. Thinking we might bounce as low as $2500
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we broken the red downward resistance, now testing 4k. Things are looking good but we're not out of the woods yet. But this is a good sign
Actually i see an inverse h&s from the beginning of the red line, looks bullish to me.
heisginger
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@picklerants, thanks for this. How do you feel about the H&S now? Looks like it failed to materialise to me. I'm still pretty confident that the downtrend is holding and we will retest lower levels, but every time it seems to be ready to tank, and confirm this, some big orders prop it up again and make me reconsider. Interesting times!
picklerants
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I would set buy orders from $3200 - $2400. Thinking we might bounce as low as $2500
cpumechanic
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If it does head down, where do you think some good bounce plays may be? At this point, I show an ascending trendline that would be around $3200 if it heads down there soon. Would that be a likely spot or do you think it will go fairly strongly to the previous bottom before bouncing?
picklerants
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@cpumechanic, its hard to tell but there is two bearish patterns (descending triangle, and H&S) both of which are breaking at the same time I think we might break to 3000 and bounce. You have to remember there is always panic selling too and even if the support is 3200, the selling will usually overshoot it and we go lower but predicting bottoms is hard.