BTCUSD - Strong Bearish signals, price drop likely
Updated
In this video I discuss the 4 bearish signals in Bitcoin right now and why I think it is highly likely price will continue to tumble from here
Bitcoin is in the process of forming a text book bearish pin bar. BTCUSD has been in a strong downtrend over the past week or two and has staged a minor pullback. This was a moment of truth for the bulls to see if the downtrend would be reverse and that reversal has failed. A bearish pin bar is essentially showing a failed breakout where now participants with long positions will be squeezed out (long squeeze) as price continues to fall. Due to this fact it is common to see a sharp price movement lower after a bearish pin bar has formed. There are multiple layers of confluence in this trade 1)bearish pin bar, 2)false break and rejection from key support, 3) rejection of 9 ema, 4)continuation of the bearish trend.
One option to trade this setup is to enter short on a break of the bottom of the pin bar and then close the position after hitting the first or second major support.
Bitcoin is in the process of forming a text book bearish pin bar. BTCUSD has been in a strong downtrend over the past week or two and has staged a minor pullback. This was a moment of truth for the bulls to see if the downtrend would be reverse and that reversal has failed. A bearish pin bar is essentially showing a failed breakout where now participants with long positions will be squeezed out (long squeeze) as price continues to fall. Due to this fact it is common to see a sharp price movement lower after a bearish pin bar has formed. There are multiple layers of confluence in this trade 1)bearish pin bar, 2)false break and rejection from key support, 3) rejection of 9 ema, 4)continuation of the bearish trend.
One option to trade this setup is to enter short on a break of the bottom of the pin bar and then close the position after hitting the first or second major support.
Note
The daily candle has now closed and we officially have a pin bar! If this is a trade you are wanting to take I would highly suggest waiting until price breaks below the low of the pin bar before going short.
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