BTC bear flag
GM everyone,
For those of you that like diagonals trendlines. There are two clear trendlines at work that provide strong resistance short term for BTC. I do not expect much from BTC right now. Clear downtrend with not strong bullish signs and volume gradually decreasing, which, although many will tell you, is a good thing. However, the reality is that the volume is dry because there is low demand and increased supply. We can see this on the few breakouts on the downside we had in the past few weeks. There is a spike of volume on the breakout due to the initial panic and then a gradual decrease suggesting lower demand.
Also, as you can see from the chart, it looks like there is a clear bear pennant/flag in play at the moment.
If BTC picks up some momentum on the upside, I do not see BTC going any further than 45500 unless strong volume push in and momentum start to turn. It looks to me bulls are scared right now. There is quite a firm conviction from some that BTC is bottoming out. The market is overleveraged, with many stop losses piling up on both sides. However, most of the shorts stop losses are above 46k, but the Longs stop losses are at 40k - 39k, making them highly vulnerable and bears will follow with conviction on a breakout.
Although many are calling for different bullish patterns, the reality is that there is a lot of bias at this stage, and there is no clear bullish price pattern. There was a modest spring at 39500, which is bullish per see with good volume. However, the bulls follow-through was weak and with poor volume.
BTC has just recently annihilated a cluster of strong supports for the uptrend, which are now all turned in resistances, and they are all sitting between 44 and 52k. I don't see much momentum, and considering the stochastic is almost overbought already, a strong push up is unlikely. Technically or you break them gradually step by step, or the asset has strong momentum behind and break through with strength...
Hence in my head, I see continuation. I would reconsider my hypothesis when BTC breaks above 46k.
Also, the Elliott Wave counting is not favouring an uptrend but rather a downtrend.
Risk management is paramount, and you should know in advance invalidation points and your take profit, so do not copy and paste, follow your strategy as you don't know mine.
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For those of you that like diagonals trendlines. There are two clear trendlines at work that provide strong resistance short term for BTC. I do not expect much from BTC right now. Clear downtrend with not strong bullish signs and volume gradually decreasing, which, although many will tell you, is a good thing. However, the reality is that the volume is dry because there is low demand and increased supply. We can see this on the few breakouts on the downside we had in the past few weeks. There is a spike of volume on the breakout due to the initial panic and then a gradual decrease suggesting lower demand.
Also, as you can see from the chart, it looks like there is a clear bear pennant/flag in play at the moment.
If BTC picks up some momentum on the upside, I do not see BTC going any further than 45500 unless strong volume push in and momentum start to turn. It looks to me bulls are scared right now. There is quite a firm conviction from some that BTC is bottoming out. The market is overleveraged, with many stop losses piling up on both sides. However, most of the shorts stop losses are above 46k, but the Longs stop losses are at 40k - 39k, making them highly vulnerable and bears will follow with conviction on a breakout.
Although many are calling for different bullish patterns, the reality is that there is a lot of bias at this stage, and there is no clear bullish price pattern. There was a modest spring at 39500, which is bullish per see with good volume. However, the bulls follow-through was weak and with poor volume.
BTC has just recently annihilated a cluster of strong supports for the uptrend, which are now all turned in resistances, and they are all sitting between 44 and 52k. I don't see much momentum, and considering the stochastic is almost overbought already, a strong push up is unlikely. Technically or you break them gradually step by step, or the asset has strong momentum behind and break through with strength...
Hence in my head, I see continuation. I would reconsider my hypothesis when BTC breaks above 46k.
Also, the Elliott Wave counting is not favouring an uptrend but rather a downtrend.
Risk management is paramount, and you should know in advance invalidation points and your take profit, so do not copy and paste, follow your strategy as you don't know mine.
FOLLOW ME, SHARE, LIKE AND COMMENT
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