BTC looks primed for a reversal within the next several months.
The apex of the bull pennant is ~5700, however, a steep drop to 4k followed by a substantial bounce could also be in play.
Lets see how this one plays out.
Why will I be Long?
1. Bull Div taking shape (4 Hour)
2. A completed Elliot wave on the last swing high followed by the current ABC retracement suggests a bounce around ~5.7-5.9k
3. Shorts at 38k at time of publish
Why I think it doesn't bounce here at 6200-6300?
1. Death Cross between 200, 50 MA (4 Hour)
2. RSI rejected at key resistance level
BTCUSD seems to dump on every retracement to the .618 fib.
HOWEVER, we did establish a higher low which would suggest that we may even test higher, possibly to the .786 fib at 7700.
Let me know your thoughts.
BTC has respected the downwards trendline for the past several months and will continue to do so in the months following. I see 7500 being the absolute top of this weak recovery rally before a stark Bearish reversal down to 5.2k.
The trend is your friend.
A continuation pattern of the prior double top may be in play...
I've taken a small short position at 6920 to hedge against my long from 6300.
1. We are currently trading outside of the channel that we have been in for the past week
2. Each time a large green candle is formed it is typically followed by an equally long red candle downwards
(I've circled each instance)
BTC is inarguably in a strong bearish trend ever since the bubble popped at 20k.. we're seeing lower highs and lower lows with no reversal in sight.
We have been bouncing up and down off the descending triangle for the past couple months and I believe a continuation in this trend is highly likely.
My next target on the ride down is ~5700 as that has proved...
(Noob trader here with my first analysis)
If BTC consolidates above the descending daily triangle, then I believe that we are likely to see another small pump to retest 8300 (which I think will fail).
If BTC breaks the bullish support line, then I think another massive dump to the 5600 support will occur.
-I think this is the most likely scenario to occur since...