Hi guys, thank you for taking the time to read my analysis on Bitcoin.
It looks like a solid bear flag is forming on the 4hr time frame. While there seems to be some decent support here holding the price up, I really don’t think it will last. Just look at the selling volume on the drop down.
With that said, if we see this bear flag break, we can expect a breakdown towards my T1 box.
This area is in line with the 0.382 retrace of this entire bull rally (from December 2018 low to present) and in the general area of the next major ascending trend line.
So we might just see a wick down to the .382 and then see the actual candle body close above the trend line.
But we can also see that this area is the exact target of our bear flag target which is around a 13% drop.
I will further assess things (if) and when price reaches this $6,800-7,000 range.
I have several reasons why I am currently bearish on the short/med term and one thing to look at is how much shorts have dropped over the past couple of days.
There are still many bulls out here who are buying every dip and this one is no exception.
The herd starts to rack up their shorts at the bottom and get out of their shorts at the top, so I always try to do the opposite of what the herd is thinking!
Thank you for reading, and please give this a thumbs up!
My last analysis which shows the next potential targets:
And my analysis before which shows a very similar fractal bitcoin is still following pretty closely:
It looks like a solid bear flag is forming on the 4hr time frame. While there seems to be some decent support here holding the price up, I really don’t think it will last. Just look at the selling volume on the drop down.
With that said, if we see this bear flag break, we can expect a breakdown towards my T1 box.
This area is in line with the 0.382 retrace of this entire bull rally (from December 2018 low to present) and in the general area of the next major ascending trend line.
So we might just see a wick down to the .382 and then see the actual candle body close above the trend line.
But we can also see that this area is the exact target of our bear flag target which is around a 13% drop.
I will further assess things (if) and when price reaches this $6,800-7,000 range.
I have several reasons why I am currently bearish on the short/med term and one thing to look at is how much shorts have dropped over the past couple of days.
There are still many bulls out here who are buying every dip and this one is no exception.
The herd starts to rack up their shorts at the bottom and get out of their shorts at the top, so I always try to do the opposite of what the herd is thinking!
Thank you for reading, and please give this a thumbs up!
My last analysis which shows the next potential targets:
And my analysis before which shows a very similar fractal bitcoin is still following pretty closely:
Comment:
It might also be worth keeping an eye on this blue trend line. I'm not really sure how reliable it is, but it was solid support for 3-4 months back in 2018 so I would definitely not ignore this!
Order cancelled:
Bear flag pattern is invalidated. I am now looking at $8,150 for continuation of drop.