Bitcoin / EuroShort
Textbook three line strike on BTC. Mixed signals...
Updated
Looking of 1h chart of BTCEUR. At the 04.01 we have seen a textbook example of the bearish three line strike pattern. This Pattern shows as a combination of three descending candles which are showing lower lows and lower high than previous ones. These 3 candles are followed by the long candlestick with opposite sentiment: in this case increase in the price. It is usually a continuation pattern which means that a downtrend is still valid.
Also sudden jump in price appeared exactly at the strong resistance line of 5264 eur . This resistance was very strong in the past: in last year end of october. It also was acting as a support in later that month, which shows the significance of resistance. Going through this line won't be easy and several rebounces are expected.
Now we are what appears to be a bearish flag continuation with price hitting higher highs and closing to the strong resistance line of the downtrend chanel.
The 60h EMA line was working as a very sensitive resistance line before in the market. Once price hit this line before a sudden price drop started. Now it is acting as a support. So we have some mixed signal in this bullish flag.
If the breakout happens from this flag or from the chanel wall, a long position can be made.
Also worth mentioning is the 5824 resistance line which was working as a support line for previous days, now it can become a strong support line and BTC price could rebounce from there.
The RSI shows overbought situation, so most probably we will go with price lower and check the lower part of the flag later this day.
Also sudden jump in price appeared exactly at the strong resistance line of 5264 eur . This resistance was very strong in the past: in last year end of october. It also was acting as a support in later that month, which shows the significance of resistance. Going through this line won't be easy and several rebounces are expected.
Now we are what appears to be a bearish flag continuation with price hitting higher highs and closing to the strong resistance line of the downtrend chanel.
The 60h EMA line was working as a very sensitive resistance line before in the market. Once price hit this line before a sudden price drop started. Now it is acting as a support. So we have some mixed signal in this bullish flag.
If the breakout happens from this flag or from the chanel wall, a long position can be made.
Also worth mentioning is the 5824 resistance line which was working as a support line for previous days, now it can become a strong support line and BTC price could rebounce from there.
The RSI shows overbought situation, so most probably we will go with price lower and check the lower part of the flag later this day.
Note
we are now stuck on the 200 EMA line and the trend is most likely to die down and check the bottom of the flag
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