Bearish pennant forming on BTC. Could move lower.BTC/USD has been trading around 5400-5600 following that huge dip from 6300-5170ish. We are now consolidating in what I believe is a bearish continuation pattern in the form of a bearish pennant. I am seeing different variations of the same pattern (will post images below) and it looks like we could be seeing another retest of that 5100 area, if not lower to around 4400-4500. The measured move is about a $1000 drop (length of flag-pole) and that would put around $4500. However, on some different perspectives, some are showing a $300-500 flag-pole and that would lead to a drop around $5000-5200. Either way, I suspect we will see a retest of $5100 support area that previously held, and if we can hold that once more and form a double bottom, that might be an indication to open a long from that support level. I still think the lack of volume and liquidity is an issue, and it is why I am leaning bearish at this time until I have evidence to suggest I should switch to a bullish perspective. $5800-$6000 will be a titan of a resistance to break now (strong support now becomes strong resistance) and without buy-side volume showing up yet, I don't see any reason to be bullish at these levels until we see buyers show up. I have a short from 5550ish currently open and I'm looking at the upper 5100 range as target 1, and the 4500 range for target 2. If for some reason the price climbs to the upside, I will add more to my short position the closer it moves to the resistance zone around 5800-6000.
--This is not financial advice. Always do your own research and come to your own conclusions before buying/investing, as investing in cryptocurrencies comes with high risk and high amounts of volatility.
