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-
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-