TRAPPED. The BEARS fight back, and even put up their FLAG.
Updated
Hello everyone! Back at it again with an idea that is not actually new, and just a reiteration of my previous. I mentioned before that the up trend was a very clear bull trap. Although the upside went for much longer than I had anticipated, the analysis still held true! TO BE CLEAR ONCE AGAIN: Our analysis from previous ideas HAS NOT changed. Our targets are still set to 6000 where we will re-evaluate. Frankly speaking, the sooner the better, so that our good ol' friend BTC can get out of this rut. We've dived bombed back down to where we were before at around the 6600 level, and have started forming a BEAR flag.
I've pointed out some very simple spots on the chart to point out just where everything went wrong. Let's get it!
In general, when in a down trend, previous resistance becomes new support. This is also true in the opposite direction, where previous support becomes previous resistance. The arrows on the chart indicate the points to where we crossed the EMA, and if you notice the volume, we passed these theoretical resistance points with VERY low volume. This indicates that the bears are not fighting the bulls for this position, but rather LETTING the bulls pass through.
During this down trend, what we've really been waiting for, is a sharp, all hope is lost, sell-off. So far, it's only been a very slow burn. Without the quick sell-off, a quick trend reversal is also very unlikely, and we should continue to question whether the reversal is real. Bears need to get it all out of their system, before the bulls can ever think about trying to rally again. A distinct bottom needs to happen, and a confirmed engulfing buy back would be ideal for us to feel any sort of confidence diving back in.
It's been a painful ride for thus far, but hopefully as I keep you guys updated, we can reduce it as much as possible. Protect your capital folks!
You're responsible for your own choices, and this is my own personal analysis; there are always risks involved. I try to lay out the potential risk:reward in the near future for entertainment purposes only.
gl;hf
I've pointed out some very simple spots on the chart to point out just where everything went wrong. Let's get it!
In general, when in a down trend, previous resistance becomes new support. This is also true in the opposite direction, where previous support becomes previous resistance. The arrows on the chart indicate the points to where we crossed the EMA, and if you notice the volume, we passed these theoretical resistance points with VERY low volume. This indicates that the bears are not fighting the bulls for this position, but rather LETTING the bulls pass through.
During this down trend, what we've really been waiting for, is a sharp, all hope is lost, sell-off. So far, it's only been a very slow burn. Without the quick sell-off, a quick trend reversal is also very unlikely, and we should continue to question whether the reversal is real. Bears need to get it all out of their system, before the bulls can ever think about trying to rally again. A distinct bottom needs to happen, and a confirmed engulfing buy back would be ideal for us to feel any sort of confidence diving back in.
It's been a painful ride for thus far, but hopefully as I keep you guys updated, we can reduce it as much as possible. Protect your capital folks!
You're responsible for your own choices, and this is my own personal analysis; there are always risks involved. I try to lay out the potential risk:reward in the near future for entertainment purposes only.
gl;hf
Note
Good after noon folks! Looks like we're still in this bear flag. If you look at the how we've been accumulating, you can see that sell side volume is slowly increasing. We'll see a break out of this formation soon, and it's likely it will be towards the downside.As always,
gl;hf
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