[BTC] Bullish Signs in Bearish Continuation Pattern?
Updated
Quick look at the shorter, 1-hr timeframes. Not a whole lot to say or analysis to go off on the short term for Bitcoin so kind of just a hypothetical.
Bearish mid/longer term and the symmetrical triangle consolidation right at an important long term trendline (dotted red), isn't making me any less bearish. Buuuuut... we've seen this before not too long ago and proceeded to rocket upwards.
The downtrend and triangle consolidation looks very similar to the larger fractal which dropped BTC from nearly 112K to 6k and then a big ol' short squeeze invalidated the bearish symmetrical triangle with the very notable green candle propelling us to recent highs in the upper 9k area.
Of course the Long/Short Ratio on Bitfinex isn't nearly low enough to support a massive short squeeze like we saw in April. Although, this time around we're in a smaller fractal so that's not all that necessary and plus it's highly likely that was done artificially by larger traders hunting stop-losses. The 1-min candles can support that theory here, creating a big 1-hr candle ending with a longer wick up top. A bull flag is in the making after that now in the purple trendlines.
Also note, bear volume spikes declining as bull volume spikes increasing as the triangle range narrows.
We'll see how this plays out, not holding on to positions until a clear break. Most likely bearish but shouldn't discount bullish possibilities.
Bearish mid/longer term and the symmetrical triangle consolidation right at an important long term trendline (dotted red), isn't making me any less bearish. Buuuuut... we've seen this before not too long ago and proceeded to rocket upwards.
The downtrend and triangle consolidation looks very similar to the larger fractal which dropped BTC from nearly 112K to 6k and then a big ol' short squeeze invalidated the bearish symmetrical triangle with the very notable green candle propelling us to recent highs in the upper 9k area.
Of course the Long/Short Ratio on Bitfinex isn't nearly low enough to support a massive short squeeze like we saw in April. Although, this time around we're in a smaller fractal so that's not all that necessary and plus it's highly likely that was done artificially by larger traders hunting stop-losses. The 1-min candles can support that theory here, creating a big 1-hr candle ending with a longer wick up top. A bull flag is in the making after that now in the purple trendlines.
Also note, bear volume spikes declining as bull volume spikes increasing as the triangle range narrows.
We'll see how this plays out, not holding on to positions until a clear break. Most likely bearish but shouldn't discount bullish possibilities.
Note
A look at the larger fractal triangle bottom around $6500. Very Similar but different in some aspects.
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