Update on Bitcoin. It looks like the bear pennant has expanded and I still believe we will fall from here.
On the original analysis above you can see the price just touching the top of the apex of this pennant, and often times a re-test of this point can occur before the price falls.
I have an updated chart below that shows a larger bear pennant forming. This time however, I will give you more conservative targets.
The conservative target takes a measure from the high price of the pennant minus the low price of the pennant and taking that value and subtracting it from the apex (or breakdown) of the pennant.
That gives us a target of around 6k which is where a lot of buyers are waiting to jump in and form a double bottom from the 6k price in February.
I also want to note the Hidden bearish divergence that is showing up on the 4 hour time frame. As long as the price doesn't move up and the RSI continues to drop, we should see a continuation of the bear downtrend. Keep your eye on the RSI and obviously watch out for a breakout of the pennant (either up or down) to give confirmation of the next move.
On the original analysis above you can see the price just touching the top of the apex of this pennant, and often times a re-test of this point can occur before the price falls.
I have an updated chart below that shows a larger bear pennant forming. This time however, I will give you more conservative targets.
The conservative target takes a measure from the high price of the pennant minus the low price of the pennant and taking that value and subtracting it from the apex (or breakdown) of the pennant.
That gives us a target of around 6k which is where a lot of buyers are waiting to jump in and form a double bottom from the 6k price in February.
I also want to note the Hidden bearish divergence that is showing up on the 4 hour time frame. As long as the price doesn't move up and the RSI continues to drop, we should see a continuation of the bear downtrend. Keep your eye on the RSI and obviously watch out for a breakout of the pennant (either up or down) to give confirmation of the next move.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.