Bitcoin's price chart just printed a major sell signal on the daily time-frame. You can see that price is still contained in the bearish descending channel
on a logarithmic chart and has been rejected at a key structural price level. The $11500-$12000 area has been tested multiple times, most recently on February 20th when price was rejected off that level, and once again price failed to break this level and we now have a bearish
confirmation candle. The stochastic
indicator is giving a bearish
signal and is also showing some divergence which indicates that momentum is fading. There is a structural support level
near the $9000 lows where price could find support especially with the 200 day simple moving average
looking to confluence at that area, but with price respecting the descending channel
, we look to be making a double top
structure which is further confirmation of a continued bearish trend
. All of this combined with low volume
is a significant indication of an imminent breakdown. If you follow my ideas then you know that I've been bearish
on this market and anticipating a break down to the $5000 target level for quite some time now, and it seems like we might finally be ready to see that break.
We broke out of that blue bullish channel
on the 4 hour chart, and are likely headed to the structural support at the low $9000 area. We will need to break this level to confirm a move down to $5000.
You can see that we got that bounce, but we are now hitting resistance and the move is getting exhausted. Note that the bottom of that cyan bullish channel
from 2017 is also sitting around that $9000 area. If you believe that bitcoin
is going to remain bullish
that's the place to buy, but if we break that $9000 level watch out!