Bitcoin is Gearing Up For A Nasty Retest of 6K! (BTC)
Updated
Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! Looking at the four hour chart, you can see that BTC has formed a bear flag consolidation, after failing to breakout above the inverse head and shoulders pattern on 3/5. Looking at the action inside of the bear flag, you can see that BTC has produced several failed attempts to successfully rally out of the flag. Resistance has been found at the 50 EMA (in orange) and the current candle is a borderline bearish engulfing candle, that has pushed BTC back into the body of the flag. The only thing holding BTC up at this point, is the 20 EMA (in blue.) As I'm writing this, the 20 EMA is actually being pierced. So, if we get some candle closes below the 20 EMA here, the next stop should be the pink trendline, as it converges with the 78.6% retrace. Below there, we should see a bear flag breakdown. If this bear flag does break down, we are very likely to see test of the low on 2/6, meaning BTC will likely fall to 6,000, or lower.
If you focus on the broad picture of the chart, you can see that BTC has just failed at my infamous green trendline. The last candle rallied up to it, touched it, and now we've plummeted lower, printing a bearish engulfing candle in the process. Technically, we appear to have just popped out of the bear flag, to confirm that trendline as resistance. That is very bearish price action, and if this current candle closes below the 20 EMA (in blue) we are very likely to see sustained downside action. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
If you focus on the broad picture of the chart, you can see that BTC has just failed at my infamous green trendline. The last candle rallied up to it, touched it, and now we've plummeted lower, printing a bearish engulfing candle in the process. Technically, we appear to have just popped out of the bear flag, to confirm that trendline as resistance. That is very bearish price action, and if this current candle closes below the 20 EMA (in blue) we are very likely to see sustained downside action. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Note
The update is here!
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