After the recent rally above $7400, the price has found support in the $6700 area.
As I was analyzing the chart, I could see a bull flag formation which means prices would rally up above the $7000 mark again.
I am facing a huge problem in trading because I am not being able to recognize these huge dumps. Can anyone help me out on how they predict such falls. I know that one cannot be 100% correct, but I will be thankful if you share what you use to identify such falls.
As you can see from the charts, I have simply pointed out the previous candles which was again formed yesterday on one day chart. Powerful reversals had been started after this candle in the past. Although, it is not guaranteed that such candles always lead to reversals, but this definitely seems to be a bullish trap until it crosses 12000. Until then I would day...
As you can see that MACD is showing that the suspense is about to end and either we might shoot up or down. The coming storm will either take you back to the highs or we might drop to 4000-5000 range which many experts believe that Bitcoin might fall before rising. Lets hope this bear trend ends and we enter the bull trend.
Seeing the RSI indicator we can see a clear divergence. I am not a very experienced trader, but a lot of experts say to short in these conditions. At the end, it is your decision.
I am a learner and I won't mind if you point out any mistakes. Also, please share any informational content which can help one to become a good trader.