BTC appears to be in a descending triangle. The green fibonacci circle taken from the 2018 all-time high to 2018 capitulation shows that BTC is close to crossing over. I expect once it does cross over, BTC will fall to the bottom of the triangle. Descending triangles typically break to the downside, so I expect much further downside. With long positions outnumbering short positions by 3 to 1, this is not the time to be bullish. This is when the market pulls the rug out from beneath you. I expect the crash to happen this week. If you want to be bullish, then wait for a better entry point.
Comment:
Bitcoin hit my first 2 targets, the 21 and 50 day EMAs. 10.5k is strong support, so Bitcoin could rally before continuing the downtrend.
Comment:
Bitcoin hit my third target, the 100 day EMA at 9.5k. It found support on it and started to rally. From a contrarian perspective, the high level of fear in the market right now is a bullish indicator. I expect a rally to the top of the descending triangle in the month of August. A retest of the Fibonacci retracement gives weight to this expectation.
Trade closed: target reached:
Bitcoin dropped to $8159.
21 day EMA at 10.6k
50 day EMA at 10.2k
100 day EMA at 9.2k