In this video I discuss the 4 bearish signals in Bitcoin right now and why I think it is highly likely price will continue to tumble from here
Bitcoin is in the process of forming a text book bearish pin bar. BTCUSD has been in a strong downtrend over the past week or two and has staged a minor pullback. This was a moment of truth for the bulls to see if the downtrend would be reverse and that reversal has failed. A bearish pin bar is essentially showing a failed breakout where now participants with long positions will be squeezed out (long squeeze) as price continues to fall. Due to this fact it is common to see a sharp price movement lower after a bearish pin bar has formed. There are multiple layers of confluence in this trade 1)bearish pin bar, 2)false break and rejection from key support, 3) rejection of 9 ema, 4)continuation of the bearish trend.
One option to trade this setup is to enter short on a break of the bottom of the pin bar and then close the position after hitting the first or second major support.
Bitcoin is in the process of forming a text book bearish pin bar. BTCUSD has been in a strong downtrend over the past week or two and has staged a minor pullback. This was a moment of truth for the bulls to see if the downtrend would be reverse and that reversal has failed. A bearish pin bar is essentially showing a failed breakout where now participants with long positions will be squeezed out (long squeeze) as price continues to fall. Due to this fact it is common to see a sharp price movement lower after a bearish pin bar has formed. There are multiple layers of confluence in this trade 1)bearish pin bar, 2)false break and rejection from key support, 3) rejection of 9 ema, 4)continuation of the bearish trend.
One option to trade this setup is to enter short on a break of the bottom of the pin bar and then close the position after hitting the first or second major support.
Comment:
The daily candle has now closed and we officially have a pin bar! If this is a trade you are wanting to take I would highly suggest waiting until price breaks below the low of the pin bar before going short.
