Bitcoin is ranging between roughly 5500 and 4800-5000. I see this as a potential 'cool-off period' after such a massive move.
As you can see there is a trendline and I am using it to confirm a move down... A break of this trendline will likely send BTC down first to 4800, then 4450, then around 3660. But this would really be a guessing game with BTC, just play level-by-level.
Similarly, a break of $5575 (I am using a 4hourly and above close to base this off) will likely mean a move towards $6000 -> this also lining up with the 12H 21EMA. This area will also likely be rejected on the first test.
I know that there is bullish divergence on 4h-12h, but this doesn't mean it definitely will happen. Look at the trend we currently are in on a bigger time frame, it's down.
The next point I would like to make is that CME's seem to have a very clear symmetrical triangle / bearish pennant forming on lower time frames:
I would be using CME's as 'second source' and react to the market if one of the trendlines breaks. Sometimes CME's seem to have more accurate representations of price action. I like to use it to spot any differences compared to the spot price.
From current prices, BTC is likely going to tighten-up and price will contract before a breakout.
As you can see there is a trendline and I am using it to confirm a move down... A break of this trendline will likely send BTC down first to 4800, then 4450, then around 3660. But this would really be a guessing game with BTC, just play level-by-level.
Similarly, a break of $5575 (I am using a 4hourly and above close to base this off) will likely mean a move towards $6000 -> this also lining up with the 12H 21EMA. This area will also likely be rejected on the first test.
I know that there is bullish divergence on 4h-12h, but this doesn't mean it definitely will happen. Look at the trend we currently are in on a bigger time frame, it's down.
The next point I would like to make is that CME's seem to have a very clear symmetrical triangle / bearish pennant forming on lower time frames:
From current prices, BTC is likely going to tighten-up and price will contract before a breakout.
Trade active:
4h closed above 5575
