Today, I'm looking at the hourly chart, to try to decipher the intraday price action after the recent fall. We can see that since the sell off on the 10th, price has formed a consolidation (in black.) At the moment, the current candle is starting to break down below the bottom of the . Now, it is worth noting that this is building on important support around the 3567 level. There are a few highs and lows in this region, so it definitely has some meaning to the market.
Looking more closely at the price action inside of the , we can see that it also resembles a pattern. Of course, the right shoulder is not complete, but there is a downward sloping neckline, and a clear left shoulder, with a head, and half of a right shoulder. So, it wouldn't surprise me to see a continuation to the downside. I'm expecting to see a fall to the 3567 level, to complete the right shoulder, and then a breakdown below there, which should take BTC down to the 3456.88 handle. That level is the exact low from the right shoulder of the big inverted pattern that I have been covering.
Despite the fact that we appear to be breaking down below the flag, is currently very light. So, we will need to see an increase in sell for this to generate any momentum. Regardless, after those two big red candles, there was no real bounce. All we've seen is this consolidation so far. Now, if price were to reverse and break out above the top of this , that would negate it and I would be looking for a test of the rising pink . However, that seems unlikely at this point. The more likely technical possibility right now, is that we will see a continuation lower, toward the 3456 level. If we break below that, we will probably see a retest of the 3000 area.
Be smart. Be nimble. Good luck trading everyone!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***