Hey guys, got another Bitcoin update for you.
As you can see above there is clearly a bear pennant forming on the hourly.
The pole was created by the sharp advance downward with expanded volume.
The pennant has been formed by converging lower highs and higher lows and volume has been steadily decreasing as the price moved within the pennant.
A break below the pennant should see a sharp increase in volume and a drop of similar magnitude to the drop that formed the pole.
The price target is calculated from measuring the length of the pole and subtracting it from the apex or breakdown price.
On my chart I drew one more possible small move up to the top range of the pennant, however it’s possible we drop before that.
Thanks for reading my analysis, please like if you found this useful =)
As you can see above there is clearly a bear pennant forming on the hourly.
The pole was created by the sharp advance downward with expanded volume.
The pennant has been formed by converging lower highs and higher lows and volume has been steadily decreasing as the price moved within the pennant.
A break below the pennant should see a sharp increase in volume and a drop of similar magnitude to the drop that formed the pole.
The price target is calculated from measuring the length of the pole and subtracting it from the apex or breakdown price.
On my chart I drew one more possible small move up to the top range of the pennant, however it’s possible we drop before that.
Thanks for reading my analysis, please like if you found this useful =)
Comment:
If we break above the apex at 7.1k and hold, then this pattern is invalid and I will reconsider my position. In that case, we should expect another rally up before the next big dump. For now, we are still ranging within the pennant that I revised above.
Order cancelled:
Apex of pennant has clearly been compromised. There will be a small dip coming soon, but it will not get the targets given for the bear pennant. I will have a new update soon!
On the original analysis above you can see the price just touching the top of the apex of this pennant, and often times a re-test of this point can occur before the price falls.
I have an updated chart below that shows a larger bear pennant forming. This time however, I will give you more conservative targets.
The conservative target takes a measure from the high price of the pennant minus the low price of the pennant and taking that value and subtracting it from the apex (or breakdown) of the pennant.
That gives us a target of around 6k which is where a lot of buyers are waiting to jump in and form a double bottom from the 6k price in February.
I also want to note the Hidden bearish divergence that is showing up on the 4 hour time frame. As long as the price doesn't move up and the RSI continues to drop, we should see a continuation of the bear downtrend. Keep your eye on the RSI and obviously watch out for a breakout of the pennant (either up or down) to give confirmation of the next move.