Mostly, this will be a note to myself and because I am new to technical analysis, any helpful comments would help randomly stumbling across this but: I believe that there are multiple possibilities as there always should be; First, I believe it is possible that bitcoin is in a descending triangle opening a good opportunity for a inverted head and shoulder reversal pattern to occur as the volume is decreasing with the decline in price, however, there is still a price objective that would need to be hit from the last bear flag as well which would be somewhere around 6000k. There are more buyers stepping in, but I do not believe there is enough volume for a strong bullish breakout from the descending wedge, and I do think it is more likely for the price objective of the bear flag to be hit before a reversal occurs. In addition, there is a larger wedge that has been significantly broken, however, there is either a triple at roughly 6400-6600 or double bottom at 5800-6000 in play with descending volume to confirm both, however it should be noted that the supply of Bitcoin from sellers and/or the quantity of sellers are declining from the lower volume at the sell off points. But if there is not enough buy pressure, just as anything, the price will go down and this goes about with anything.
Take Home: 1.) If the Bullish Descending Wedge over takes the bear flag and it's price object, then the Wedge's Price objective would be roughly 7100 to 7300, however, there is a strong chance that the small head and shoulder pattern would occur and that would alter the price objective. <- Probable 2.) The Bear Flag over takes the Bullish Wedge that is currently forming and hits its price objective. <- Higher Probability
Tried my best! Cuddly Cuddles Out!
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[Image] Currently, the Descending wedge broke out to the down side, while the target objective is currently set for approximately 6000-5900 for the bear flag, it is still possible for the bear flag to fail to hit it's objective price if the support at 6000 is strong enough.
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I don't thing what I wrote on my last comment appeared so I am just going to rewrite it.The price broken out of the descending wedge to the downside and it approached the support line, however, it was rejected.
The target price of the Bear Flag is 6000-5900, however, if the support at 6000 is strong enough, it will fail to hit its objective and it will reinforce the triple or double bottom--especially if it has strong buy volume.
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[Image} There is a bullish divergance in the 1 hour RSI and buy volume is picking up, however, I do not know their failure rates, but this is a good sign that a bottom is more likely to happen and if a bottom does happen then bitcoin may possibly move out in a way that I have drawn in white, IF AND ONLY IF this is a bottom.
If it is not, well then it is likely bitcoin will move lower, and the width of the descending triangle puts it around 1000 however, I believe that is unlikely because once mining bitcoin is no longer profitable the miners can simply shut off their operation and limit the supply of new bitcoin and bitcoin re-entering the market.
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https://www.tradingview.com/x/Cv3J3bg9/
According to the 1 hour RSI there is not enough strength for a further drop (the white arrow), however, this is not true in the 4 hour and 1 day RSI, there is still enough strength for it to move down. However, today I think that there will be a retest and another failure of the support 6000. There still isn't enough buying volume for me to call it a bottom yet. I do believe that there will be a soft penetration of the 6000 support of 1%-7%, because of the consensus among most of the community (from what I have gathered).
Failure to increase buy volume and buy interest would mean that the popular interest is lower and it may sadly descend in price on less than optimum volume (In My opinion).
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I don't know why my texts aren't being posted with the image, maybe I will post them separately, all I am saying for the image above this update is that the hourly RSI is weak and so I do not think we will truly be retesting the 6000 mark, however, there is still fuel in the 4 hour and daily RSI which means that we will most likely be testing the 6000 mark in the coming day to few days. There is possibly enough strength in this support to create a 3rd bottom which means that the screenshot above this last one would be roughly about the movement of price.
As for Bitcoin bottoming out, if 6000 is the bottom, I believe that there will be a soft penetration of the 6000 mark by roughly 1%-7% but 5%-7% would be a dangerious range and if it does hit that range then it is less likely that the price will bounce.
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The 4hour RSI now shows a bullish divergence as well, so there might not be a true test of 6000 within a relative time frame. A test of the 6500 resistance level accompanied by increasing buy volume would be a positive sign, a significant break would be a bullish sign, otherwise a test and possible soft penetration of 6000 would still be in the question (In my opinion).
IF there is not enough buy volume as well, there is a strong chance of sideways movement in and around the support zone.