Will the 3rd tap on the uptrend that started December 4th hold?
Hello all,
If the third tap on the uptrend that started on December 4th doesn't have a strong impulse back above $50,000 it'll likely fail to hold & break down which would trigger a sell off.
Why do I think this?
We broke below the macro uptrend that started in July 2021 which would of been the 3rd tap and if it held we'd be above $70,000 heading towards $100,000 like everyone said would happen in December going into 2022 but that never happened. Instead we had a $15,000 rejection which took us back below the previous ATH from April 2021 and back below the macro $50,000 psychological level. It failed on December 7th which started a small sell off, but in the last hours we got rejected and printed a lower high, and this is after breaking below the uptrend that started December 4th. If it was a fake out we'd already be back above $50,000 already, but it's been around 9 days and still haven't flipped it back into support.
Not to mention the 4 hour momentum oscillator just left the sell zone (98) and it still around (50), so a good buy zone is (1 - 20) and it can go a few days in this zone for accumulation purposes to gain enough momentum for a short squeeze upwards.
It looks like a bear flag has potentially formed, or a bear pennant, it really doesn't matter they're both similar and it's the market structure which matters the most. At the end of the day it's just added confluence which gives you more conviction towards the specific trade.
$45,555 would be my short term target.
(this is not financial advice, it's just my journal)
Please leave a like or comment if you liked this technical analysis and my own personal explanation of the current market conditions we're seeing.
👍
If the third tap on the uptrend that started on December 4th doesn't have a strong impulse back above $50,000 it'll likely fail to hold & break down which would trigger a sell off.
Why do I think this?
We broke below the macro uptrend that started in July 2021 which would of been the 3rd tap and if it held we'd be above $70,000 heading towards $100,000 like everyone said would happen in December going into 2022 but that never happened. Instead we had a $15,000 rejection which took us back below the previous ATH from April 2021 and back below the macro $50,000 psychological level. It failed on December 7th which started a small sell off, but in the last hours we got rejected and printed a lower high, and this is after breaking below the uptrend that started December 4th. If it was a fake out we'd already be back above $50,000 already, but it's been around 9 days and still haven't flipped it back into support.
Not to mention the 4 hour momentum oscillator just left the sell zone (98) and it still around (50), so a good buy zone is (1 - 20) and it can go a few days in this zone for accumulation purposes to gain enough momentum for a short squeeze upwards.
It looks like a bear flag has potentially formed, or a bear pennant, it really doesn't matter they're both similar and it's the market structure which matters the most. At the end of the day it's just added confluence which gives you more conviction towards the specific trade.
$45,555 would be my short term target.
(this is not financial advice, it's just my journal)
Please leave a like or comment if you liked this technical analysis and my own personal explanation of the current market conditions we're seeing.
👍