After the head and shoulders pattern was formed, BTC crossed below support at $416. BTC has continued to move down and has already broke psychological support at $389. There is a downward channel in both BTC and the stochastic indicator. Look for more downside ahead in the SHORT TERM
Where to look for a Bottom?
1. Stochastic continues trending into the oversold range which indicates strengthening down trend. While in this region, a signal cross forms a buy signal. Then both K and D lines move over 20.
2. A buy signal forms in the stochastic indicator which breaks it out of the downward channel. This combined with rising prices that break the resistance line in BTC's downward channel.
3. For a better conformation of more uptrend, look for both BTC to break the resistance line in the downward channel and bullish stochastic signals.
4. Look for DOJI's followed by higher highs. This may suggest a coming reversal of this downtrend.
I would like to disclose that although in the short term I am bearish on Bitcoin, in the long term I am very Bullish and very curious what kind of price rally we will see at the Bitcoin bowl.
Where to look for a Bottom?
1. Stochastic continues trending into the oversold range which indicates strengthening down trend. While in this region, a signal cross forms a buy signal. Then both K and D lines move over 20.
2. A buy signal forms in the stochastic indicator which breaks it out of the downward channel. This combined with rising prices that break the resistance line in BTC's downward channel.
3. For a better conformation of more uptrend, look for both BTC to break the resistance line in the downward channel and bullish stochastic signals.
4. Look for DOJI's followed by higher highs. This may suggest a coming reversal of this downtrend.
I would like to disclose that although in the short term I am bearish on Bitcoin, in the long term I am very Bullish and very curious what kind of price rally we will see at the Bitcoin bowl.
