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BITCOIN - Currently On The "Bear Flag", Ready To Make a BREAKOUT

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
After the massive drop (Bitcoin' came down ~$1100) it stopped around the $6500! Yesterday's candle closes above the $6500 which is a good sign because in August, the $6,500 area was a very strong resistance to beat but after many attempts it was successful and now the old resistance becomes a support.
Currently, the price started to form a continuation pattern called "Bear Flag" and the Bear Flag on the important area is a pretty significant sign if we make a breakout from either direction.

Let's start from bearish confirmations and the targets:
Firstly, we get a confirmation when we get a close below the bear flag and second confirmation comes is then when we get a close below the strong support area $6248! This area as worked historically very well and it's enough to be in the confirmation list!
Close below $6248 and we are ready to go and test the $6000 area where is also the major counter trendline which starts to work as a support (pulled from 24. June low and second touch 14. August low)
If the drop comes very sharp then we could even touch the 2018 low point which is currently $5755 and in this area we want to watch what the price action shows to us because this area is pretty strong considering the major counter trendline and 2018 low!

Bullish confirmations:
Firstly we have to break above the round number $6500, above the March low and we have to get a close above the Bear Flag upper trendline . A perfect close would be around $5580-$6610!
The targets are very short-term:
1. Around $6767 - there is a strong resistance level , the Fibonacci retracement 38%(pulled just before the drop and to the low point) and different timeframes EMA's starts to work as resistances.

2. If we find so much power and volume (which is unlikely after the panic on the market) then the highest possible short-term target could be around $7000!
There is our trendline which pulled from the wicks on the 4h chart, there is the perfect Fibonacci retracement level 62% and also the round number $7000 which starts to work as a resistance!


Hopefully, this quick overview helps You out a little bit to confirm Your own analysis!
Please, don't forget to LIKE!
Thank You for your support!

Have a nice weekend!
Comment: Hey! We are still in the ascending “Bear Flag”, breakout critiria are the same!

We have a yesterday’s candle close below the $6500 and below the April low level which is historically worked very well, so, those are not the best signs but no panic, HH’s and HL’s are on the chart and if we find confirmation then we are still ready to go!

If You haven’t LIKED yet, then please do it righ away, just hit the LIKE button and give me a little support if You think I deserve it! ;)

Have a nice weekend!

Comment: If we look inside the bear flag then there is an another pattern and currently we can say “Descand(ish) Triangle” which indicates bearisness! So, we have one confirmation more on our list if we break below the trendline!
BUT currently we try to break upwards from the triangle. This sign is not so significant, we have to take down the upper trendline before we can say something ;)

....aand You didn’t like it before but luckily You can do it right now :D
Thank You for Your support!

Comment: NEW IDEA!
If You like it, please hit the LIKE button!
Thank You for your support I really need that ;)!
Short term BTC forecast:
Reply
BTC may make a surprise turn around soon. if this special pattern repeat itself.
+1 Reply
@weslad, thank You for sharing!
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