BTC: Possible Bearish Continuation Pattern
Updated
Basic Trading 101
- Bearish pennants are continuation patterns that mark a pause in the movement of a price halfway through a strong downtrend.
- They occur just after a sharp drop in price and resemble a triangular flag as the price moves sideways, making gradually lower highs and higher lows.
- The downtrend then continues with another fall in price.
BTC seems to be forming a bearish pennant.
If Bitcoin breaks upwards from this pennant, we could expect the price to retest the 200 Exponential Moving Average.
If not, it could drop down the the blue area of the chart.
Looking at the 1 hour time-frame, we can see a bearish divergence on the RSI, indicating the possibility of a price drop to the lower line of the pennant, which would further indicate the validity of a Bearish Pennant.
- Bearish pennants are continuation patterns that mark a pause in the movement of a price halfway through a strong downtrend.
- They occur just after a sharp drop in price and resemble a triangular flag as the price moves sideways, making gradually lower highs and higher lows.
- The downtrend then continues with another fall in price.
BTC seems to be forming a bearish pennant.
If Bitcoin breaks upwards from this pennant, we could expect the price to retest the 200 Exponential Moving Average.
If not, it could drop down the the blue area of the chart.
Looking at the 1 hour time-frame, we can see a bearish divergence on the RSI, indicating the possibility of a price drop to the lower line of the pennant, which would further indicate the validity of a Bearish Pennant.
Note
Bitcoin has broken out of the Pennant. However, the recent pump has created a bearish divergence on the 1h, 2h, and 4H RSI, indicating the possibility of an imminent dump from here, or even from a little higher.
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