Impending death cross on 4 hour chart. Bear signals everywhere.
As you can see each time we tested the top of the ascending broadening wedge(a pattern which usually breaks down) the price action was rejected, and once the wedge ran into the top wall of the descending channel the support of the t line could no longer prop it up causing the current breakdown from the only bullish thing we had going which was the bull flag. Now that the only bullish signal has broken down only bearish ones remain and as you can see on this 4 hr chart the 50ma(in orange) is about to cross under the 200ma (in blue) which creates a death cross which is very bearish and indicates the path of least resistance is to the downside. Hopefully, the 50ma on the 1 day chart will be enough support to once again bounce us back upward as it has done the last 2 times we tested it but even if not, as a firm believer that we are still just creating Eve's handle in this descending channel, I think the worst case scenario drop wise would be 7350 but we will more likely bounce back at 7500 or even 8000 before dipping that low. A smart move here would be to set a buy in a pip above the 1 day 50 ma with a stop loss a couple pips below it should it not hold support this time. From there maybe do the same thing with 8000 and if it breaks under that try it again at 7700 and once more at 7500. I would simply buy the dip if it somehow drops under 7500 but in the unlikely scenario that it goes under 7350 I would exit completely because if it does that it will likely be crashing much further...a scenario I find highly unlikely. Best of luck with whatever strategy you choose for yourself, this is simply my strategy and not meant to be taken as financial advice. Thanks for reading and good luck.
Comment:
the 50ma on the 1day chart is currently at 8260 or so and will probably be around 8280 by the time the price retests it so my buy back is gonna be at 8298 with anstop loss around 8190 if it triggers my stop I will then try buying back at 8010 with another stop at 7839