tommyf1001

Potential drop incoming for Bitcoin

BINANCE:BTCUSDT   Bitcoin / TetherUS
Hey guys, just wanted to point out a couple things I've noticed that look bearish for Bitcoin .

First is the bearish divergence showing up on the 4 hour time frame. Look on the RSI below, it looks like it’s going to fall pretty hard if this divergence holds up.

Also, if we look at the chart, we see that the price was unable to pierce through the purple line which represents a very important support/resistance that has held bitcoin up since September 15th low.
This support line was broken recently, leaving the next support (green line) from November the only last true support for this year’s uptrend.
Now that the price is bouncing between the purple and green trend lines , we see the price touched the purple resistance and is now falling back down.

The fact that Bitcoin was unable to get through this resistance, is a big setback for this bull run.

If volume and momentum kick up on this drop, I expect to see prices fall to the .236 fib retracement level first. If it continues to fall, the green support below will be the next target.

I hope this helps everyone with their trades. Good luck!

Comment: Making a small bounce back up right now. That was to be expected considering RSI was in oversold territory on the 1hr, it needs to come up a bit to reset.

I wouldn't be surprised if the price comes back up to the .382 fib level to re-test that as resistance now.
If that happens, then it looks like the right shoulder of what appears to be a head&shoulders formation could be taking shape.
Once this pattern is realized, expect the subsequent selloff to be swift with heavy volume.
Of course, we should wait for the re-test of .382 fib and a failure to break through this zone before considering going short.
Comment: There is possibly a head and shoulders formation as I mentioned in my last update. As long as price stays below the .382 fib level, the probability of downside action is much higher that this formation plays out. Targets are still the same.
Here's the chart:
Comment: Finally seeing the start of this drop. The head and shoulders pattern I drew in the update above filled out pretty damn perfect. Now we just need to see if this drop will have enough volume and momentum to take us down to target 1. Hope you guys found this idea helpful :)
Comment: In typical Bitcoin fashion, right as we start falling it gets stalled out and shoots upward overnight while I'm asleep. There just wasn't enough momemtum or volume. Still, the price could not get past the .382 retracement once again. This level has been pretty strong resistance lately.
I've also noticed this entire formation is looking pretty symmetrical, and even though it's never perfect we can still use this to help provide a clue to timing the next dump or pump. With that said, we should expect to see a big move in either direction by this evening, tomorrow morning latest.
I'm surprised that 4 hour divergence didn't lead to a bigger dump by now, this market is causing lots of confusion for traders. That's why I'm staying out until things become more clear. No point trying to guess where the market is headed with all this resistance directly overhead. Until then we remain patient and strike at the right moment
Comment: Looks like we are at the .382 fib level once again. This formation is almost perfectly symmetrical, and the price is looking like it wants to complete the same bart-like pattern that was formed around April 13th. Like I said in my last update, we should see a big move in either direction by tonight, latest tomorrow morning. Let's see if it continues to complete this symmetrical pattern, or if we break up and see a surge past the .382 fib.
Comment: Check out my latest idea:
Comment: We finally made it here folks. We are at the downtrend resistance line(red) formed since the All Time High in December. We have yet to break this downtrend line, the price has only touched this line twice since the 19.7k formed the start of the trend line and has failed both times to break through.

If we get through this line, it will be huge for Bitcoin and will finally put an end to the bear market. I'm sticking to my gut and calling for a drop only after failing to get through the trend line. I see a huge 4 hour bearish divergence setting up on the RSI again and there is still the hidden bearish divergence on 4 hr looming. Let's see if price can break through and remove the possibility for divergence
Good call, looks like we're dropping pretty fast!
Reply
@Q3D, Thanks! yea it dropped pretty nice so far but the bulls are still strong and will fight to keep the price up. Plus a lot of people have their money in alts right now, so this might take some time. I think a drop below 7.6k will trigger a lot of panic sells though, so that could help speed things up
+1 Reply
looking good so far :) im curious if your prediction holds.. i hope so!
+1 Reply
tommyf1001 youmadbro
@youmadbro, thanks, me too! :)
+1 Reply
youmadbro tommyf1001
@tommyf1001, no lets hope for T2! :D
+1 Reply
Sorry that the text on this chart is so small! I have a 4k monitor and tend to forget most people don't have that resolution when they're looking at my charts.
+2 Reply
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