Bitcoin flag / pennant pending break, where are the bulls at?
Updated
Bitcoin / US dollar 30 minute candles
Good day to all my friends, I hope you are all doing well despite Bitcoin's "bearishness". Bitcoin's renewed volatility in the last week sure has been influencing alt trends to the max again. Most high market cap coins are once again mimicking Bitcoin's every move.
As far as BTC / USD is concerned we're basically were we left it 24 hours ago: still moving within a flag (purple lines), although I suppose it could also qualify as a pennant, so I've drawn pennant lines as well (white lines). The indicators start to flatline as well, but since I don't see any signs of a (bullish) reversal I'm afraid I still lean towards a bearish scenario at this time.
Two days ago Bitcoin broke down from the yellow lined flag it was trending in, and it has been hitting my support targets ever since. The finish target for this bearish flag is around $6600, right at the August / September 2017 trend extrapolation. The support zones bears will need to break to reach that target are likely to be found at $8000, $7600 and $7200. If it reaches $6600 and doesn't bounce up from there we might soon after face a retest of February's low around $5800 ~ $6000.
Of course nothing is written in stone here, who knows, maybe out of the blue some wonderful Bitcoin / Cryptocurrency news pops up today that ignites the bullish rocket engines once again. If they do, bulls will need to break 8500 and move on upwards with a good volume increase.
I don't have a glass ball that predicts the future, so be aware things may work out differently as I think they will. You can use my charts to help you identify trend lines & support and resistance zones to monitor for break in trends. Personally I only enter trades after I witness a break confirmation and set layered sells slightly below resistance targets. This is not financial advice: you should never invest solely upon reading my or another persons TA and always do your own research: explore news, social media, white papers, tech info and so on.
Be extra cautious during these times of Bitcoin volatility, the market is twitchy and trends are easily broken at the moment so be sure to monitor your trades and set alerts and stop loss orders in place.
If you enjoy my analysis make sure to follow me at TradingView and other social media. A push on the like button is very much appreciated!
You can click the following chart for a 6 hour candle overview zoom. Although I posted it over a week ago, it is still following the lines accurately:
Happy Trading! ~ CryptoJC
Good day to all my friends, I hope you are all doing well despite Bitcoin's "bearishness". Bitcoin's renewed volatility in the last week sure has been influencing alt trends to the max again. Most high market cap coins are once again mimicking Bitcoin's every move.
As far as BTC / USD is concerned we're basically were we left it 24 hours ago: still moving within a flag (purple lines), although I suppose it could also qualify as a pennant, so I've drawn pennant lines as well (white lines). The indicators start to flatline as well, but since I don't see any signs of a (bullish) reversal I'm afraid I still lean towards a bearish scenario at this time.
Two days ago Bitcoin broke down from the yellow lined flag it was trending in, and it has been hitting my support targets ever since. The finish target for this bearish flag is around $6600, right at the August / September 2017 trend extrapolation. The support zones bears will need to break to reach that target are likely to be found at $8000, $7600 and $7200. If it reaches $6600 and doesn't bounce up from there we might soon after face a retest of February's low around $5800 ~ $6000.
Of course nothing is written in stone here, who knows, maybe out of the blue some wonderful Bitcoin / Cryptocurrency news pops up today that ignites the bullish rocket engines once again. If they do, bulls will need to break 8500 and move on upwards with a good volume increase.
I don't have a glass ball that predicts the future, so be aware things may work out differently as I think they will. You can use my charts to help you identify trend lines & support and resistance zones to monitor for break in trends. Personally I only enter trades after I witness a break confirmation and set layered sells slightly below resistance targets. This is not financial advice: you should never invest solely upon reading my or another persons TA and always do your own research: explore news, social media, white papers, tech info and so on.
Be extra cautious during these times of Bitcoin volatility, the market is twitchy and trends are easily broken at the moment so be sure to monitor your trades and set alerts and stop loss orders in place.
If you enjoy my analysis make sure to follow me at TradingView and other social media. A push on the like button is very much appreciated!
You can click the following chart for a 6 hour candle overview zoom. Although I posted it over a week ago, it is still following the lines accurately:
Happy Trading! ~ CryptoJC
Note
Update 1: Bitcoin broke above the white pennant lines and moved up to the purple flag ceiling at 8500 dollar. It hasn't managed to break above the flag ceiling yet and is miniature flagging, within the flag, at this time. In the meanwhile the RSI indicates that it is overbought, which is usually a signal that a reversal (bearish in this case) is to be expected. However this is not guaranteed, if bulls manage to force an upward break after all we can expect it to target 8800 and possibly 9200 afterwards.
Note
Update 2: Good morning everybody!
The RSI was correctly interpreted in my last update: after the RSI indicated overbought, Bitcoin did not manage to break out of the flag and fell back down to 8100 dollar. The bears didn't have it in them though to push it below the flag bottom. It bounced back up and is currently testing $8350.
The current 30 minute indicators give room for positive movement, but 5 and 15 minute candle indicators are leaning towards an incoming (bearish) reversal. BTC is also lacking volume at this point to give bulls a good chance marching upwards. We'll have to see how it breaks, but if it fails the current test at the middle of the flag at 8350 ~ 8400, I feel a downward break of the purple flag will be incoming soon.
Note
Update 3: Bitcoin broke down from the purple flag. For now it stopped... right at the blue descending channel border. Here will most likely be a critical break our bounce for Bitcoin. Lower candle time frame indicators such as 5 minute candles root for a (upward) reversal, but 30 minute and up not so much. Volume is still relatively low as well. Unless Bitcoin bulls have a surprise up their sleeves I think it will break below the blue line and continue towards the downward targets.
Zoomed in 5 minute candle view:
Note
Update 4, March 18Bitcoin still downtrending, en route to the short term purple flag target at $7100. Currently slight support at $7300. It might take a breather here and flag a bit, although if I look at how it keeps hugging the purple line it looks like bears have their mind set at pushing it down rather sooner then later. Before $7100 some support can be found at $7200.
Trade closed manually
Hey guys, I've posted a new Bitcoin analysis, click the chart below to check it out:
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