Traders, be careful with BTC at this time. There is a massive bear flag playing out on BTC and there is little to no support underneath the channel I have drawn here. If we extrapolate the bear flag pole, we get a level of around 11k on BTC. For anyone bullish on BTC, we saw a rejection wick kind of candle a few days back when price was trying to break out. This just short the amount of short interest piling into BTC and any rally will be met with sell demand. Will we get it today, or tomorrow, I do not know. But there's a high probability that it will move with the markets. With the recent rejection of S&P500 from the daily downward trendline, more shorting is very possible. Here is a summary of the bullish and the bearish cases for BTC -
Bullish:
1. BTC is at oversold levels, can start rallying
2. BTC tried to breakout a few days back but was met with sell demand, there is a possibility of another attempted breakout
3. Consolidating for the next big break
Bearish:
1. Under the 200-day moving average
2. In a bearish trend without any successful breakouts
3. Did not rally when the stock market was rallying, major weakness possible
Let me know your thoughts.
Bullish:
1. BTC is at oversold levels, can start rallying
2. BTC tried to breakout a few days back but was met with sell demand, there is a possibility of another attempted breakout
3. Consolidating for the next big break
Bearish:
1. Under the 200-day moving average
2. In a bearish trend without any successful breakouts
3. Did not rally when the stock market was rallying, major weakness possible
Let me know your thoughts.