Bitcoin / TetherUSShort
Bearish Momentum Building Up Across Broken Channel
My prediction in the previous article has once again proven accurate and remains relevant. However, I think it's time for an update. This time, I have incorporated Gann fans and channels into the analysis.
As the chart breaks through a sloping fan and moves into the next, more steep fan zone, the momentum increases. Obviously, the bearish momentum has been building up to this point, and the chart is encountering the upward Gann fan, representing the bullish component of the momentum. The higher time frame still indicates a long-term uptrend. So, will Bitcoin's plummet stop here? I believe caution is still warranted, as Bitcoin has broken the neckline of a double top pattern—or the light blue channel. The channel breakdown signals an inability to maintain the levels above it. Typically, decline won't stop until the boundary of a channel of the same width. My automated script has drawn a large green box below 40K as a target zone, with its upper edge coinciding with the channel line. After some minor rebounds, this will be the target. Isn't this a plausible scenario? The direction itself does not contradict the target zone set in my previous article, but theoretically, it could go much further.
As the chart breaks through a sloping fan and moves into the next, more steep fan zone, the momentum increases. Obviously, the bearish momentum has been building up to this point, and the chart is encountering the upward Gann fan, representing the bullish component of the momentum. The higher time frame still indicates a long-term uptrend. So, will Bitcoin's plummet stop here? I believe caution is still warranted, as Bitcoin has broken the neckline of a double top pattern—or the light blue channel. The channel breakdown signals an inability to maintain the levels above it. Typically, decline won't stop until the boundary of a channel of the same width. My automated script has drawn a large green box below 40K as a target zone, with its upper edge coinciding with the channel line. After some minor rebounds, this will be the target. Isn't this a plausible scenario? The direction itself does not contradict the target zone set in my previous article, but theoretically, it could go much further.
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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.