So I Was Wrong, Was I? LOL BITCOIN!! (BTC)
Updated
Welcome friends and haters alike, to this update analysis on Bitcoin! And man-oh-man, are the haters ever present. The comment section, on the last BTC analysis was riddled with verbal diarrhea from the professional amateurs. They're all calling for the moon, and saying the bottom is in, but the overhead resistance hasn't even been conquered yet. Not to mention, we're still in an enormous downtrend channel. It just amazes me when these people comment, because I can see just how uneducated they are. It's scary, really. This bear market is in full effect. A bounce doesn't end a bear market. The bulls still have work to do, to regain control, and confirm a long-term reversal. Furthermore, my last analysis was technically not wrong. Although we did have a bear flag breakdown at the time, I've noticed that we've traded higher, but only to form a larger flag. Technically, the flag portion of the structure can rise all the way to the highest part of the pole, and it would still be a bear flag. As you can see, this structure has simply widened. What is perhaps even more interesting, is this structure now ties in with the fractal symmetry of the chart. You can see that there are now three structures, that suggest a retracement to the head and shoulders + symmetrical triangle target.
I'd like to draw your attention to the recent price action. You can see that the 50 EMA (in orange) was actually surpassed, but resistance was found at the green dashed trendline, as well as the 78.6% retrace, and the falling dotted blue trendline. So, what we have here is a convergence of several resistance levels, which are all strengthening this level as resistance. Furthermore, it's happening in the end portion of this bear flag structure, which is increasing the likelihood of a breakdown. Currently, the price action has actually fallen back below the 50 EMA, and is trading slightly below the bottom of the flag. You have to understand, patterns sometimes morph into larger or more extended versions of the original. If you remember my analyses on the triangle formation in ETH, you will recall that a similar occurrence happened there. Now, could this pattern break to the upside, and be negated as a bear flag? Yes. There is a huge bullish divergence on the MACD, that I've been talking about for a while now. The divergence makes me think that a bottom could be forming around here, but the overall formations are still bearish. If you look at the falling blue dotted trendline, you can see that there were two prior failures to get above it, and now we appear to be failing at it for a third time. Obviously, a break above that level would change things, but currently, it appears to be failing. The MACD looks like it's trying to roll over, and volume is continuing fall, which corresponds to the normal action seen in a bear flag consolidation. The analysis is what it is. Don't forget, I'm the professor here! Remember to check yourself, before you question my expertise.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
I'd like to draw your attention to the recent price action. You can see that the 50 EMA (in orange) was actually surpassed, but resistance was found at the green dashed trendline, as well as the 78.6% retrace, and the falling dotted blue trendline. So, what we have here is a convergence of several resistance levels, which are all strengthening this level as resistance. Furthermore, it's happening in the end portion of this bear flag structure, which is increasing the likelihood of a breakdown. Currently, the price action has actually fallen back below the 50 EMA, and is trading slightly below the bottom of the flag. You have to understand, patterns sometimes morph into larger or more extended versions of the original. If you remember my analyses on the triangle formation in ETH, you will recall that a similar occurrence happened there. Now, could this pattern break to the upside, and be negated as a bear flag? Yes. There is a huge bullish divergence on the MACD, that I've been talking about for a while now. The divergence makes me think that a bottom could be forming around here, but the overall formations are still bearish. If you look at the falling blue dotted trendline, you can see that there were two prior failures to get above it, and now we appear to be failing at it for a third time. Obviously, a break above that level would change things, but currently, it appears to be failing. The MACD looks like it's trying to roll over, and volume is continuing fall, which corresponds to the normal action seen in a bear flag consolidation. The analysis is what it is. Don't forget, I'm the professor here! Remember to check yourself, before you question my expertise.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
Note
Update: After the bear flag broke to the downside, a reversal occurred, sending BTC back up to test the bottom of the 50 EMA. If BTC confirms it as resistance, we will head lower. However, if BTC breaks above, we could be forming the right shoulder of an inverse head and shoulders pattern, which could be a sign of a bottom forming in BTC.Note
Updated BTC analysis!
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