Bullish and Bearish Technical Analysis on Bitcoin (Short-term)
Hi here are a few patterns I have drawn out for you, we are analyzing BTC/USD on the 4 hour timeframe.
BEARISH:
As you can see on the 4hr time frame for BTC/USD we can see a rising wedge pattern & a head and shoulders pattern beginning to form. The wedge consists of the head and shoulders pattern neckline and candle lows. If we continue with this pattern and see a completion of the head and shoulders pattern then we can expect a break out of the rising wedge to lower levels such as 29,000. There are many important fibonacci levels which we must pass through first, however, if FOMO hits the market we may even go to lower levels such as $24,000. If we cannot hold this level then we may go to $18,200. These levels are open Bitcoin CME Future Gaps. We do not have to fill these gaps but most of the time we do fill these gaps. With that being said, we can expect to get a bounce at $20,000 since it is such a big psychological price, just like $10,000 and $12,000 were a few months ago. If the head and shoulders pattern plays out then we can expect many longs to be liquidated and a long squeeze down to the levels I just talked about. Assuming we do visit these levels, the candles will most probably have large wicks down since many buyers will be looking to long from these levels.
BULLISH:
As you can see on the 4hr time frame for BTC/USD we can see a double bottom pattern beginning to form inside the rising wedge. If the double bottom pattern plays out and we move up to higher levels then a good opportunity to long would be at the bottom of the rising wedge pattern were I have drawn the 12345 pattern.
EXTRA:
SInce we have many new retail investors who are interested in investing, if the price does break out of the rising wedge and we do not complete the double bottom pattern then we can expect a heavy downfall in price. Of course, this will be a great buying opportunity for long-term investing.
BEARISH:
As you can see on the 4hr time frame for BTC/USD we can see a rising wedge pattern & a head and shoulders pattern beginning to form. The wedge consists of the head and shoulders pattern neckline and candle lows. If we continue with this pattern and see a completion of the head and shoulders pattern then we can expect a break out of the rising wedge to lower levels such as 29,000. There are many important fibonacci levels which we must pass through first, however, if FOMO hits the market we may even go to lower levels such as $24,000. If we cannot hold this level then we may go to $18,200. These levels are open Bitcoin CME Future Gaps. We do not have to fill these gaps but most of the time we do fill these gaps. With that being said, we can expect to get a bounce at $20,000 since it is such a big psychological price, just like $10,000 and $12,000 were a few months ago. If the head and shoulders pattern plays out then we can expect many longs to be liquidated and a long squeeze down to the levels I just talked about. Assuming we do visit these levels, the candles will most probably have large wicks down since many buyers will be looking to long from these levels.
BULLISH:
As you can see on the 4hr time frame for BTC/USD we can see a double bottom pattern beginning to form inside the rising wedge. If the double bottom pattern plays out and we move up to higher levels then a good opportunity to long would be at the bottom of the rising wedge pattern were I have drawn the 12345 pattern.
EXTRA:
SInce we have many new retail investors who are interested in investing, if the price does break out of the rising wedge and we do not complete the double bottom pattern then we can expect a heavy downfall in price. Of course, this will be a great buying opportunity for long-term investing.