Here, we would like to discuss the bearish scenario. My job is to make sure that everyone has an understanding of both sides of the spectrum when looking at the market. In this analysis, we will be looking at the higher 1D timeframe, as it is now showing strong resistance - we have now reached a key milestone resistance at $16,000. This is now the make or break moment for bulls to break this key area. This won't come with ease - that is why I mentioned it is important to be level minded when the market is euphoric. As a disclaimer, this is merely a pattern and not indicating price targets. This is purely an educational post.
We are also seeing an "EXTREME GREED" on the crypto fear and greed index, which may indicate a strong sell signal for many bears. Remember, this index never existed prior to the 2018 crash. The more the market has access to these types of information, the smarter the market becomes. This is why an instant ride to 20K may not come as quickly as we may think. It's important to be a contrarian here!
Technicals:
The long legged doji pattern is an extremely classic pattern that can be traded wisely if done correctly. We can see the pattern form when the wick on both ends of the body is large - this is indicative of two equally strong forces but in opposition to each other. It thus reflects indecision - that is it. When a long legged doji forms during strong downtrends or uptrends, it means that there is a move towards equilibrium between supply and demand . In such a scenario, there are strong indications of the trend reversing. For instance, when the long legged doji candle appears during a bullish trend , there might be a reversal. The buying pressure grows stronger initially but soon, there is fear of a reversal of trend, and traders start selling positions, which leads to a drop in price. There sia tug of war between two pressures, ie, buying and selling, and eventually the closing price gets pushed back to the level of the opening price.
For my bullish post, please check out the short term BULLISH analysis!
The invalidation of bull flag pattern may cause the market to turn bearish.
XForceGlobal
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@mirowais632, Absolutely. That is why we need to be prepared for both cases. Thanks for your support as always buddy.
Fox666
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Evening Star Candlestick Pattern?
CryptoEngineering
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It reminds me around Sep 2017, It is time to shine for altcoins until all goes down 30% again, buddy.
LeveragedLord
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everything looks great eric
also another thanks for yfi call<3
XForceGlobal
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@The_Auriel, Absolutely bro! I'm so happy for you (if you entered)!!
We have to be very careful of all possible cases and look for the larger swing trade. Love your profile pic too! Haha!
Gunslinger2005
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@The_Auriel, here is mine. press play. and mine are free ;)
XForceGlobal
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@Gunslinger2005, We checked. You really got rekt on 90% of the trades, so please don't post your stuff here LOL. This is an educational and analytical channel. I'm sorry if you have lost money, but this is not a place to post your trolling :)
seems to me you are posting bearish and bullish cases both. I guess it saves from the trouble of ever having to admit being wrong. (like shorting from 10ks to the 13/14ks haha) but I wouldn't pick on you if you ever mentioned those.. because when you make a good call you sure do like to pat yourself on the back ^^. with phrases like "exactly as predicted, or this is why longing is a bad idea" because despite the tunnel vision and those hourly gaps longing was a pretty good idea.