Today we are going to provide the Technical Evidence that we collected that supports a Short view on the Short term on Bitcoin.
Everybody should make their own analysis and then use other views to Complement or discard that analysis. Another important item is that our conclusion is purely based on price action and we do not take any other data from outside the chart.
Let start:
On the Weekly Chart the main items we observe are:
A) Price has not made any significant correction on the last bullish movement that started in December 2018.
B) Currently, the price is against a Resistance zone and a Reversal candlestick pattern has been made there.
C)The Candlestick pattern that we observe is an "Evening Star".
D) To Forecast the possible finalization of the correction we are waiting for. We used Fibo levels, there is a convergence between a Major Support Zone and the 50% Fibo level of the bullish movement, so, we will be looking that area for reversal movements IF the Hypothesis of the bearish movement starts, of course.
Let's take a look on the Daily Chart:
Main items we observe:
A) Price has broken the ascending trendline
B) Price is facing a Resistance Zone + a Minor descending Trendline. A convergence of this 2 levels working as resistance.
4HS Chart:
A)The main item we can see on the 4HS chart, is a Wedge Pattern Formation, against the Resistance Zone that we mentioned previously
B) Wedge pattern formations are considered reversal structures and show the weakness of the current trend ( You can check how divergences are formed on this structures if you look at them on the 15 minutes chart with MACD Histogram / RSI or similar indicators.
Based on all the previous Technical Items that we mentioned we think that a Bearish movement should star on this zone with a possible target of 38.25% or 50% of the Previous Bullish Movement.
If price surpasses the current resistance Zone on the Weekly chart we will cancel this Hypothesis of a short movement.
*Please note that the above perspective is our view on the market, We do not give signals and take no responsibility for your trades.
Everybody should make their own analysis and then use other views to Complement or discard that analysis. Another important item is that our conclusion is purely based on price action and we do not take any other data from outside the chart.
Let start:
On the Weekly Chart the main items we observe are:
A) Price has not made any significant correction on the last bullish movement that started in December 2018.
B) Currently, the price is against a Resistance zone and a Reversal candlestick pattern has been made there.
C)The Candlestick pattern that we observe is an "Evening Star".
D) To Forecast the possible finalization of the correction we are waiting for. We used Fibo levels, there is a convergence between a Major Support Zone and the 50% Fibo level of the bullish movement, so, we will be looking that area for reversal movements IF the Hypothesis of the bearish movement starts, of course.
Let's take a look on the Daily Chart:
Main items we observe:
A) Price has broken the ascending trendline
B) Price is facing a Resistance Zone + a Minor descending Trendline. A convergence of this 2 levels working as resistance.
4HS Chart:
A)The main item we can see on the 4HS chart, is a Wedge Pattern Formation, against the Resistance Zone that we mentioned previously
B) Wedge pattern formations are considered reversal structures and show the weakness of the current trend ( You can check how divergences are formed on this structures if you look at them on the 15 minutes chart with MACD Histogram / RSI or similar indicators.
Based on all the previous Technical Items that we mentioned we think that a Bearish movement should star on this zone with a possible target of 38.25% or 50% of the Previous Bullish Movement.
If price surpasses the current resistance Zone on the Weekly chart we will cancel this Hypothesis of a short movement.
*Please note that the above perspective is our view on the market, We do not give signals and take no responsibility for your trades.