MagicPoopCannon

Bitcoin Fails To Hold Downtrend Channel Breakout! (BTC)

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
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 BTC was not able to stay above the pink downtrend channel . If you recall from yesterday's analysis, I had introduced the possibility that BTC could rally to the 50 EMA , since it was above the downtrend channel , and then it could have proceeded to form an inverse head and shoulders , if a series of support and resistance conditions unfolded. However, as you can see on the chart, BTC has broken back down into the downtrend channel . Additionally, BTC tried to rally back above the channel, about eight hours ago, and failed. So, now that BTC is back inside of the downtrend channel , the likelihood of a test of the 50 EMA has been reduced. Therefore, the probability of an inverted head and shoulders pattern has also become less likely.

From a technical standpoint, all BTC has done so far, is print another lower high on the chart. Now, there's still a chance that BTC could rally back above the downtrend channel , to test the 50 EMA from the daily chart (in orange.) However, we're also printing what appears to be a bear flag inside of the downtrend channel . So, for now, we will have to see how price progresses. If we stay inside of the downtrend channel , the bias is to the downside. If BTC gets back above it, then a test of the 50 EMA would be expected. For now, let's forget about the possibility of an inverted head and shoulders pattern, adn lets focus specifically on BTC's action inside of this channel.

Happy Holidays Everyone!

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.***

-JD-
You know nothing ! If you didn’t buy September daily support at 3185 n called 1k u don’t belong to crypto
+1 Reply
fail?... good luck boy!
+1 Reply
Up to 4200 early on the 24th with heavy volume. Looks like the break out has renewed its momentum. Wow, how fast things change. Great Xmas gift!
+2 Reply
Let’s go to 4700$!
+4 Reply
i think, btc beakout the downtrend channel, starting new ath price ?
+2 Reply
Master LOL! You’re covered either direction lmao!
+1 Reply
Litovel Flav_ma
@Flav_ma, It is actually good that he covers both directions so you can go long or short based on price move. I was following another top trader's advice on tradingview who said BCH will go up and it went down and because I trusted his analyses I didnt close the trade and I lost thousands.
+1 Reply
Graphted Litovel
@Litovel, Sounds like either way, you need better risk management...
+1 Reply
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