30 Min Chart
On a 4 hr chart our 20 EMA is currently steady at 7000, it is currently converging with our descending purple trend line and our current price action.
So far today we have tested this descending purple trend line twice and confirmed it as resistance.
Currently we have a compression between buyers trying to break these massive resistance levels and sellers keeping BTC under control. This will create breakout soon in either direction. Highest probability remains bearish considering our 4hr chart's 20 EMA at 7k level just above us as well as the other three levels of resistance.
I expect to see further downside from here. If we produce a counter trend line break below the thick dotted line then expect another test of the orange final support. This would create a double bottom in which case, there would be a potential case for a bullish rally possibly up to the purple trend line once again. Day traders might take this trade, but for most I would advise on protecting capital for better entries. This market has a way of dropping hard and fast.
If we power through our 20 EMA (which is seen on the 4 hour chart of my other post), Purple Trend, Blue Trend and Grey Flag Resistance and sit at the 7125 area then you could go long until the next resistance which would be the top of our falling wedge pattern.
I have changed a few things to this chart since my last post.
1) Changed the boundaries of my flag pattern to encompass the current Highs and Lows. Making this pattern slightly more bullish as its descending
2) Brought our final orange support up to touch where we broke down to. Trend lines that start from a long time ago are difficult to get exactly right and if if your lines were right but the market reacts at different levels then let the market be the teacher and conform to its levels it gives you, within reason.
God Speed
On a 4 hr chart our 20 EMA is currently steady at 7000, it is currently converging with our descending purple trend line and our current price action.
So far today we have tested this descending purple trend line twice and confirmed it as resistance.
Currently we have a compression between buyers trying to break these massive resistance levels and sellers keeping BTC under control. This will create breakout soon in either direction. Highest probability remains bearish considering our 4hr chart's 20 EMA at 7k level just above us as well as the other three levels of resistance.
I expect to see further downside from here. If we produce a counter trend line break below the thick dotted line then expect another test of the orange final support. This would create a double bottom in which case, there would be a potential case for a bullish rally possibly up to the purple trend line once again. Day traders might take this trade, but for most I would advise on protecting capital for better entries. This market has a way of dropping hard and fast.
If we power through our 20 EMA (which is seen on the 4 hour chart of my other post), Purple Trend, Blue Trend and Grey Flag Resistance and sit at the 7125 area then you could go long until the next resistance which would be the top of our falling wedge pattern.
I have changed a few things to this chart since my last post.
1) Changed the boundaries of my flag pattern to encompass the current Highs and Lows. Making this pattern slightly more bullish as its descending
2) Brought our final orange support up to touch where we broke down to. Trend lines that start from a long time ago are difficult to get exactly right and if if your lines were right but the market reacts at different levels then let the market be the teacher and conform to its levels it gives you, within reason.
God Speed
