BTCUSD possible bear flag
Using the 9 and 15 exponential moving averages with a relative strength index and a MACD. Currently Bitcoin seems to be forming a bear flag pattern on the daily chart and just waiting to see if it breaks below the pattern. There is major support areas in the 47k range and 44k range which were tested in early February 2021. The relative strength is giving a reading below 50 in the 40 range showing signs of sellers in control of the market on the daily chart. The moving averages crossed over with the massive sell on May 13, 2021 and the MACD is giving a reading of a bearish momentum strengthening. Bitcoin could test one of these ranges before pulling back to the moving averages it all depends on the unknown which we will never know. The unknown of trading is how many people are going to sell, or buy, or going to get stopped out or margin called. Lots of factors can push markets up or down but the one factor we will never know is what other traders are going to do with their money. The only way to find out if the edge plays out in our favour is if other traders’ edges’ agree with ours. I do not currently have an open position on BTCUSD as I am looking to short if the next few days it breaks and closes below the bear pattern.
Good luck and good trading
Good luck and good trading
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