BTC Reversal Potential
As we can see we recently had a strong impulse move to the upside, bringing us all the way back up to $7,660. However, The potential of a bart pattern forming concerns me. At the moment we are in the consolidation phase of what could be considered either a bart pattern or a bull flag. However, given that we are coming up into the heaviest resistance zone we currently have on the charts. This paired with both Bitcoin's declining volume during its uptrend and its heavy correlation with equity markets as of late, I am quite certain that Bitcoin is in for another leg down to potentially the $5,500 range. I expect that nothing significant will happen over the weekend however during the next week we will have the CME opening up, which by the way is experiencing a massive decline in open interest and trading volume the last few days. On top of all that, we're entering into earnings season for equities markets and given the whole pandemic situation we can expect quite poor results which will be followed likely by more uncertainty and another massive sell off.
As of now, we are currently trading between $7,620 and $7,440 and given that it's the weekend I'll be having a great time trading back and forth within this range for a while.
As of now, we are currently trading between $7,620 and $7,440 and given that it's the weekend I'll be having a great time trading back and forth within this range for a while.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.