Hi friends! Welcome to this update analysis on Bitcoin! If you recall from my previous two posts, I informed you that "the 50 EMA (in orange) is quickly falling toward price action. Judging by how resistive the 50 EMA has been, the odds are that it will continue to put any attempted rallies in check." Looking at the four hour chart, we can see that there were two failed attempts to get above the 50 EMA, which is exactly what I expected. Now, we can see that a breakdown from the blue bear flag has occurred, which has left BTC desperately clinging to support, at the red trendline. Interestingly, we can also see that BTC has created a triangle formation (green triangle.) Additionally, there has been a bearish crossover on the MACD, indicating a bearish reversal in momentum. On the volume indicator, we can see that sell-side volume is also beginning to pick up.
So, let's recap the overall picture. We are in a bear market downtrend, BTC has repeatedly failed to get above the 50 EMA, it has broken down from a bear flag, a bearish crossover was just produced on the MACD, we've broken below the 61.8% retrace, and we've formed a symmetrical triangle during a downtrend, which is typically a continuation pattern. The bears clearly have the advantage here, and the highest probability outcome, is a breakdown of the symmetrical triangle. Initial support would likely be found near the 78.6% retracement level. A drop below that, would put my "bear flag target," which nobody thought was possible, in play. Don't lose sight of the fact that we've just confirmed the heavy resistance level as the ceiling. Further downside is to be expected. A miraculous break to the upside of the symmetrical triangle, would put the 200 EMA (in purple) and the heavy resistance level in sight — an unlikely feat.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
So, let's recap the overall picture. We are in a bear market downtrend, BTC has repeatedly failed to get above the 50 EMA, it has broken down from a bear flag, a bearish crossover was just produced on the MACD, we've broken below the 61.8% retrace, and we've formed a symmetrical triangle during a downtrend, which is typically a continuation pattern. The bears clearly have the advantage here, and the highest probability outcome, is a breakdown of the symmetrical triangle. Initial support would likely be found near the 78.6% retracement level. A drop below that, would put my "bear flag target," which nobody thought was possible, in play. Don't lose sight of the fact that we've just confirmed the heavy resistance level as the ceiling. Further downside is to be expected. A miraculous break to the upside of the symmetrical triangle, would put the 200 EMA (in purple) and the heavy resistance level in sight — an unlikely feat.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-