Bears Maul — Set To Open Up The Bloodgates! BITCOIN! (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 dropped right on mother funkin time! Funny how that works. As we head down to complete the right shoulder of this immense head and shoulders pattern, I want to discuss a legitimate target that I think makes a lot of sense for the downside. If you recall from my last BTC post, I commented on how an inverse cup and handle had formed inside of the right shoulder of this pattern. I've taken some measurements of the inverse cup and handle, and I've found that it lines up well with the 3000 level, which has acted as major support and resistance in the past. With that said, the support between the neckline of this head and shoulders pattern and the 3000 handle, is very minimal. This tells me that we could see a rapid acceleration to the downside, until the major support around 3000 is reached. To put that into perspective, it's about another 60% off of this market. Obviously, there is a condition — we need to see a confirmed breakdown below the neckline of this head and shoulders pattern. When that happens, 3000 is my general downside target, with some smaller intermediate targets along the way.
Interestingly, I've noticed that BTC is about to complete the right shoulder and test this neckline, just as LTC is moving in to test the double bottom from the low that it printed on 2/6. It is very possible that we could see a bullish reaction, or some sort of relief rally from these levels, but that isn't likely to change the overall bearish picture. Alternatively, we could smash straight through this neckline, and straight through the double bottom on LTC. That would open the bloodgates (yeah, I just coined that) in this market, so we have to pay very close attention to the price action in this area. Regardless, I want to see the destruction! Show me that the panic is here, and I'll sift through the bargains when the time's right. Who knows, perhaps 3000ish will be the full extent of the downside in this market. We'll let the charts tell us when they're ready.
Momentum is continuing to fall off of a cliff, as it expands to the downside. Sell volume is dominating the chart, as it spikes far above average, confirming a nasty inverted cup and handle breakdown, and I'm loving every second of it. 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!
PS. That bear flag breakdown was on point. Huh? =D
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Interestingly, I've noticed that BTC is about to complete the right shoulder and test this neckline, just as LTC is moving in to test the double bottom from the low that it printed on 2/6. It is very possible that we could see a bullish reaction, or some sort of relief rally from these levels, but that isn't likely to change the overall bearish picture. Alternatively, we could smash straight through this neckline, and straight through the double bottom on LTC. That would open the bloodgates (yeah, I just coined that) in this market, so we have to pay very close attention to the price action in this area. Regardless, I want to see the destruction! Show me that the panic is here, and I'll sift through the bargains when the time's right. Who knows, perhaps 3000ish will be the full extent of the downside in this market. We'll let the charts tell us when they're ready.
Momentum is continuing to fall off of a cliff, as it expands to the downside. Sell volume is dominating the chart, as it spikes far above average, confirming a nasty inverted cup and handle breakdown, and I'm loving every second of it. 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!
PS. That bear flag breakdown was on point. Huh? =D
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Note
Enter the Master's Dojo!
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