There is a bearish triangle forming on Daily chart, but even though every chart pattern can be invalidated at any point, I have many reasons to believe that this is going to behave as its meant to, a trend continuation pattern, or in our case, a bearish triangle.
Reasons to be bearish:
1. World economy. We are living unprecedented historical moments, and BTC as any other assets, is going to follow the general market sentiment, or = FEAR
The bear market is far from over, there is no positive news that can give it a push. Actually, things are getting worse with every month, and I am expecting to be like this, at least by the year-end.
2. When this type of pattern is forming, you can draw some conclusions about what is happening in the market:
- Price is creating lower highs- This means that the buyers that catch a trade at a low price, or in our case at 18k, are going to sell fast for profit, without holding the position to prices that need to break previews highs.
Also, if you are a wale, and want to add to your shorting position, you will add with every retracement.
- Price is bouncing from the 18k level many times. This is very dangerous. There are many traders out of the money, that will need BTC to go above 25k to be profitable. So, IF there are buyers that are still holding the position, in the hope to get TP at 30k for example, then this is the best level for institutions that needs liquidity to go bearish. Because of the accumulated volumes from buyers that are forced to SELL their position at the Stop Loss level. I suppose that the SL levels are around 16500 and 14500 ( personal opinion)
If this scenario happens, then my expectations are that BTC will fall very hard thru these levels.
Don't stumble trading. Trade Safe!
Reasons to be bearish:
1. World economy. We are living unprecedented historical moments, and BTC as any other assets, is going to follow the general market sentiment, or = FEAR
The bear market is far from over, there is no positive news that can give it a push. Actually, things are getting worse with every month, and I am expecting to be like this, at least by the year-end.
2. When this type of pattern is forming, you can draw some conclusions about what is happening in the market:
- Price is creating lower highs- This means that the buyers that catch a trade at a low price, or in our case at 18k, are going to sell fast for profit, without holding the position to prices that need to break previews highs.
Also, if you are a wale, and want to add to your shorting position, you will add with every retracement.
- Price is bouncing from the 18k level many times. This is very dangerous. There are many traders out of the money, that will need BTC to go above 25k to be profitable. So, IF there are buyers that are still holding the position, in the hope to get TP at 30k for example, then this is the best level for institutions that needs liquidity to go bearish. Because of the accumulated volumes from buyers that are forced to SELL their position at the Stop Loss level. I suppose that the SL levels are around 16500 and 14500 ( personal opinion)
If this scenario happens, then my expectations are that BTC will fall very hard thru these levels.
Don't stumble trading. Trade Safe!