BTC - Watch Out For The Bear! - Major Sell Signal For Bitcoin
Updated
Bitcoin's price chart just printed a major sell signal on the daily time-frame. You can see that price is still contained in the bearish descending channel on a logarithmic chart and has been rejected at a key structural price level. The $11500-$12000 area has been tested multiple times, most recently on February 20th when price was rejected off that level, and once again price failed to break this level and we now have a bearish confirmation candle. The stochastic indicator is giving a bearish signal and is also showing some divergence which indicates that momentum is fading. There is a structural support level near the $9000 lows where price could find support especially with the 200 day simple moving average looking to confluence at that area, but with price respecting the descending channel, we look to be making a double top structure which is further confirmation of a continued bearish trend. All of this combined with low volume is a significant indication of an imminent breakdown. If you follow my ideas then you know that I've been bearish on this market and anticipating a break down to the $5000 target level for quite some time now, and it seems like we might finally be ready to see that break.
We broke out of that blue bullish channel on the 4 hour chart, and are likely headed to the structural support at the low $9000 area. We will need to break this level to confirm a move down to $5000.
You can see that we got that bounce, but we are now hitting resistance and the move is getting exhausted. Note that the bottom of that cyan bullish channel from 2017 is also sitting around that $9000 area. If you believe that bitcoin is going to remain bullish that's the place to buy, but if we break that $9000 level watch out!
We broke out of that blue bullish channel on the 4 hour chart, and are likely headed to the structural support at the low $9000 area. We will need to break this level to confirm a move down to $5000.
You can see that we got that bounce, but we are now hitting resistance and the move is getting exhausted. Note that the bottom of that cyan bullish channel from 2017 is also sitting around that $9000 area. If you believe that bitcoin is going to remain bullish that's the place to buy, but if we break that $9000 level watch out!
Comment
Price reached the target at structure lows, I expect a pushback here from the bulls, but look out for the break of this level to initiate further downside.
Comment
Trade is progressing nicely, bulls lost 9k without putting up much of a fight, with the 9k level out of the way we are ahead of schedule to reach the target.
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