Clear BEAR FLAG descending wedge pattern.

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
As you guys can see, we are in a descending wedge pattern that we inherited by a pretty big failure in price action.

The way I'm seeing this is that it's failing the 1hr EMA , and we are currently under it. The next likely scenario is that it starts testing the 2hr EMA which would easily form the bottom edge of the descending wedge in a few hours. Good bet that we likely see price action down to 4900. There is a chance it has an even bigger failure in price action and we see it testing the 3hr EMA which is sitting near the 4500 price range.

The way I see it, easy 10x - 25x short. Keep the stop loss tight in case it breaks out and above the descending wedge and tries to retest the hourly EMA again. If we break above the 1hr EMA , execute the stop loss. Volume is low and most indicators seem to be showing a lack of interesting in buying.

LIKE my idea if this helped you in any way.
Comment: Just wanted to show where the 1HR EMA currently stood. Price action has been wanting to test this quite a bit... But once again, VOLUME is LOW, there doesn't seem to be interest in making a play to get above it.

IF you are wanting to wait to see if it tests the 1HR EMA and enter your short from there, that would probably maximize profits. Stop loss there would be a significant jump above the 1hr EMA.

Comment: CLEARLY it's trying to make a play for the 1hr. I still expect it to fail below it once we reach the 1hr EMA.

Comment: As you can see, we are playing out an ascending wedge inside of a descending wedge. They have the optics of being bullish because the ascending wedge is pushing prices higher, but the bigger pattern is bearish.

I'm expecting a false breakout of the descending wedge, which will still fall well within the ascending wedge. Both are bear flags, don't fall for the breakout if it happens.

I'll be opening another short with a 25x leverage once it hits the 45min or 1hr EMA. STOP LOSS IS A BREAK OUT ABOVE THEM.


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