After a couple days of consolidation following Bitoin's second attempt to break the major resistance area around $6,900, it appears bulls are losing steam here.
We can see a potential pattern forming here: an inverse Adam & Eve pattern.
This bearish pattern is supported by the fact that price cannot break the $6,900 resistance. In addition, there are significant bearish divergences on the RSI and MACD.
Stochastic indicator is also continuing its move down ahead of price action which typically leads to a drop in price as momentum declines.
The neckline of this pattern is found at the $5,900 region, and this would need to break in order for the pattern to be valid. We will evaluate when price reaches this area, but I think for now we should at least see a drop towards that price which is where the ascending trend line also lies.
A failure of this idea will be if price is able to move up and break the $6,900 resistance.
Please like this idea if you found it useful, Thanks!
We can see a potential pattern forming here: an inverse Adam & Eve pattern.
This bearish pattern is supported by the fact that price cannot break the $6,900 resistance. In addition, there are significant bearish divergences on the RSI and MACD.
Stochastic indicator is also continuing its move down ahead of price action which typically leads to a drop in price as momentum declines.
The neckline of this pattern is found at the $5,900 region, and this would need to break in order for the pattern to be valid. We will evaluate when price reaches this area, but I think for now we should at least see a drop towards that price which is where the ascending trend line also lies.
A failure of this idea will be if price is able to move up and break the $6,900 resistance.
Please like this idea if you found it useful, Thanks!
Comment:
I am only considering shorts if price can break below the red support zone
Comment:
The longer this takes to drop, the more likely we will break upward through the major resistance. Again, I am only shorting it once price can break below the red support zone
Trade closed: target reached:
Perfect trade
Comment:
$5,750 is next target if trend line breaks
Comment:
Price bounced yesterday as expected with 4hr finding support at 100MA and price reaching previous breakout level paired with bullish divergence on 1hr. Now we can see price has come back up to re-test the trend line that got broken (click play above). If bulls cannot continue to push price up, we should see a rejection from this trend line.