Watch Out! Bitcoin To Confirm New Overhead Resistance! (BTC)
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 has been grinding sideways to lower for the past few days. When we analyze this action on the four hour time-frame, there are a few things that stand out. First, BTC has formed an odd looking bear flag (in black,) which it has already broken down from. When we analyze what happened with the black bear flag, you can see that it was finding support on my $4492 target. Then, the breakdown occurred, which produced the first closes below the $4492 support level. Furthermore, BTC has tired to get above $4492 during the past few candles, but has failed to do so. Therefore, we can see that $4492 was once support, but is now beginning to act as overhead resistance — and it's doing so on the heels of a bear flag breakdown. For $4492 to truly be confirmed as overhead resistance, we need to see a sharp return to the downside, away from the $4492 level.
If we subtract the height of the black bear flag from the breakdown area, we can see that it projects a fall potential to around $3250. However, the REAL support that I've been looking for is at $3000. So, we now have a new formation that is projecting a potential fall to those levels.
Right now, the 10 EMA (in orange) can be used as a measure of immediate strength. Price has remained mostly below it during this entire selloff, so I expect price to continue to be suppressed by this moving average, which is immediately above the current price action. If BTC is able to close above the 10 EMA with meaning, that would be a new and different development in the progression of this selloff, which would signal that the market could be setting up for a short term relief rally. However, the most likely scenario is that BTC will continue it's fall toward $3000. Whether or not BTC actually gets to $3000 is yet to be seen, but there are several technical formations on the chart that easily project a fall to those levels. Keep in mind, that BTC could also plummet below $3000. $3K is very likely to offer nice initial support, but we can't ignore the fact that this is a relentless bear market. So, we will have to see how BTC acts when it reaches $3000. Until BTC closes above the 50 EMA on the daily chart (which is equal to the pink 300 EMA on this four hour chart,) or unless we see a capitulation selloff and subsequent recovery, I have no interest in going long.
The MACD did have a bullish crossover, but it came during a bear flag consolidation. A great sell signal, would be a bearish crossover on the MACD, coupled with a confirmed reversal from the $4492 resistance, on rising volume. Good luck trading, 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-
If we subtract the height of the black bear flag from the breakdown area, we can see that it projects a fall potential to around $3250. However, the REAL support that I've been looking for is at $3000. So, we now have a new formation that is projecting a potential fall to those levels.
Right now, the 10 EMA (in orange) can be used as a measure of immediate strength. Price has remained mostly below it during this entire selloff, so I expect price to continue to be suppressed by this moving average, which is immediately above the current price action. If BTC is able to close above the 10 EMA with meaning, that would be a new and different development in the progression of this selloff, which would signal that the market could be setting up for a short term relief rally. However, the most likely scenario is that BTC will continue it's fall toward $3000. Whether or not BTC actually gets to $3000 is yet to be seen, but there are several technical formations on the chart that easily project a fall to those levels. Keep in mind, that BTC could also plummet below $3000. $3K is very likely to offer nice initial support, but we can't ignore the fact that this is a relentless bear market. So, we will have to see how BTC acts when it reaches $3000. Until BTC closes above the 50 EMA on the daily chart (which is equal to the pink 300 EMA on this four hour chart,) or unless we see a capitulation selloff and subsequent recovery, I have no interest in going long.
The MACD did have a bullish crossover, but it came during a bear flag consolidation. A great sell signal, would be a bearish crossover on the MACD, coupled with a confirmed reversal from the $4492 resistance, on rising volume. Good luck trading, 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-