InvestingScope
Short

BTC Limited upside on cyclical pattern. Sell entry approaching.

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Bitcoin is close to breaking the 4H MA50. Last time that happened after a -20% drop from the most recent High, it market the upside's limit and the price reversed. It is not impossible to repeat the same pattern at around a +15% peak. This is currently around 8,930. We are therefore expecting a bearish reversal there.

If however we break above on an aggressive candle (keep checking volumes for that) then the pattern is invalidated and 4H may fill the Gap at 9,800. In fact it could be a symmetrical fill as well as seen on the chart below:


Exercise extreme caution. The 4H RSI patterns are also identical.




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Comments

So no buy the dip ?do you think we are entering bear market ?Tx
+3 Reply
@Sam111, No we don't think we are entering a bear market. This is only a seasonal pull back to the high demand zones of 7,000 and 6,000.
Reply
peugo407 InvestingScope
@InvestingScope, Really? So pull back to 7,000 and 6,000 would mean more than 50% drop and you would still believe this is normal pull back?
Reply
+1 Reply
Great analysis! But personally I think we might fall down, because a Bearish Flag formed and Ichi Cloud shows that this downtrend is pretty strong.
My idea about this, please tell what you think
+1 Reply
Price cannot go 9800$ (wave 1)
Reply
Which gap is it? CME futures gap?
Reply
Great chance. Perhaps a down flag is being generated on the BTC . Target -12% of the breakout.
Reply
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