BTC is currently in a bearish flag formation which represents that it will break down if it follows trend and all indicators line up.
BTC is showing weak signs of volume and has multiple wicks touching resistance which represents strong buying pressure.
MACD looks like it could be turning down as well.
If BTC can follow trend and continue to squeeze in the wedge formation then we should see a close below the wedge and head to previous support, which is $6298.
I see 3 potential scenarios.
1. BTC can either find support at $6298 and bounce and find resistance at previous trend line of the wedge.
2. We can find some consolidation and find BTC to continue to drop after this to $6100 range.
3. BTC has a mass increase of volume and we break up out of the wedge formation which is a bullish reversal and we can find BTC back at $6600 range. (Unlikely right now)
Still a shaky market at the moment and need to find solid support and strong volume increase to see BTC increase in price. I still personally don't think the market is ready for BTC to run back to 10k range yet. We need to some more blood shed.
Forgive the wonky green rectangle. it wasn't meant to come out like that but you get the idea.
BTC is showing weak signs of volume and has multiple wicks touching resistance which represents strong buying pressure.
MACD looks like it could be turning down as well.
If BTC can follow trend and continue to squeeze in the wedge formation then we should see a close below the wedge and head to previous support, which is $6298.
I see 3 potential scenarios.
1. BTC can either find support at $6298 and bounce and find resistance at previous trend line of the wedge.
2. We can find some consolidation and find BTC to continue to drop after this to $6100 range.
3. BTC has a mass increase of volume and we break up out of the wedge formation which is a bullish reversal and we can find BTC back at $6600 range. (Unlikely right now)
Still a shaky market at the moment and need to find solid support and strong volume increase to see BTC increase in price. I still personally don't think the market is ready for BTC to run back to 10k range yet. We need to some more blood shed.
Forgive the wonky green rectangle. it wasn't meant to come out like that but you get the idea.
Comment:
**Wicks touching resistance represents strong selling pressure**
Comment:
I proved myself wrong with Scenario 3 playing out! Great influx of volume which led to a break out of the wedge formation. Now finding support around 6600-6700 where I said it would head to. I still think there's a potential of a drop back to 6100-6400 if we do close below 6600 zone.