HA! BTC Confirms 1200 EMA As Resistance! (BTC) >=D

Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it. Looking at the four hour chart, you can see that two things that I've been warning about have happened. First, you can see that BTC rallied into the 1200 EMA (in red) which acted as resistance, immediately sending BTC lower. I've warned about this on countless occasions, and what we've actually just done, is we have confirmed the 1200 EMA as resistance. Then, you can see that BTC has also broken down below the bear flag. The previous candle held support exactly on the bottom of my red support/resistance area, and the current candle has tried to rally higher, but it now appears to be stopping at the bottom of the bear flag, in a move that would confirm IT as resistance. So, as the chart develops, we can see that the conditions are continuing to mount, for a continuation to the downside. I certainly do NOT want to be a buyer here. If you know anything about technical analysis, and you realize the bearish implications of what's happening here, you understand that buying right now is a trade that carries a high probability of failure, in the near term. Now could BTC blast off just after breaking down from a bear flag and defining the critical 1200 EMA as resistance, after producing some vicious selling? Absolutely. However, it is HIGHLY unlikely. The MOST likely scenario, is what I'm interested in, as an analyst and a trader. At this point, I'm looking for BTC to confirm the bottom of the bear flag as resistance, with a rejection at the bottom of the flag, and a break below the red support/resistance area. That move will be a sell signal for me, especially if it is coupled with a bearish MACD crossover.

Speaking of the MACD, you can see that it is attempting to crossover bearish, as it appears to be finding resistance at the bottom of the bearish channel that it just fell from. The black trendline support is my GENERAL target. Assuming that the breakdown of the bear flag is confirmed with a rejection at the bottom of it, I believe that there is a very high chance that we will see another wave of selling.

I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-Magic loves you-

-JD-

Comment:

Clearly the bottom of the bear flag did NOT confirm as resistance, so the downside target is not validated. Watch carefully for how BTC reacts to the 1200 EMA.

Comment:

As you can see, the bottom of the bear flag did NOT yet confirm as resistance, which was a sell condition on the chart. What HAS happened, is BTC has rallied higher off of the bottom of the support/resistance zone. However, it's still inside of a potential bear flag. Closing above the 1200 would be nice, but the 50 EMA (in orange) which acted as heavy resistance in the recent past (red arrows) is just above. Additionally, you can see that the falling pink trendline is also just above. So Bitcoin is not out of the woods just yet. How this candle closes will also be important to see. Does it close above or below the 1200? Does it close as bullish engulfing or not? Those developments will be important to note. If BTC closes above the top of the pink trendline, the 1200 EMA and the 50 EMA simultaneously, that would be a technical buy signal. An argument could also be made that we're forming a cup and handle, that has a deep handle, instead of a bear flag. Regardless, I will consider buying a close above the pink trendline, or selling a close below the red support/resistance zone.

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