A Revised View on Bitcoin's Chart Setup

Following the recent significant correction and subsequent reversal, I have updated my Bitcoin chart analysis.

Instead of focusing on the 59-60k range as a crucial level, I will now concentrate on two key aspects:

1️⃣ Bull Flag Pattern on 1D Chart: Bitcoin is clearly trading within a bull flag pattern on the daily chart. This has become even more apparent after the recent dip. I will be closely monitoring the upper and lower boundaries of this pattern.

2️⃣ Short-term EMA200 Significance: The EMA200 plays a critical role in the short term. Currently, Bitcoin is struggling to climb back above this crucial line. This is important because many trading strategies use the EMA200 to define overall trade direction (long or short). A price below the EMA200 typically triggers more short trades, indicating a downtrend.

What's Next?

➡️ Reversal Confirmation: Bitcoin must confirm the reversal by closing above the EMA200. A weekly close below this level could indicate mid-term downward potential.

➡️ Bullish Breakout: A break above the EMA200 would be a strong bullish signal, potentially leading to a move toward the upper boundary of the bull flag.

Note

Sunday Wrap-Up & Outlook — That's Not What We Wanted To See 🔴

Unfortunately, Bitcoin and altcoins have not continued to show strength today. On the contrary, we saw a couple of bearish signals today (although there are still 30 minutes to go until the daily & weekly candle closes):

Here's a short analysis and outlook:

🚨Bitcoin did not manage to rise above the EMA200. This can add additional sell pressure on BTC since many strategies use the EMA200 to define the trading direction (long or short)
🚨 If we don't see a significant change, Bitcoin will print a bearish engulfing candle on the daily chart, which is considered as a bearish signal — potentially followed by more substantial sell pressure (same applies to many altcoins).
🚨 Many altcoins slipped below their crucial support line (again).
🚨 The Asian sessions have been driven by solid sell pressure for a few weeks. Therefore, it is likely that today's bearish trend will continue and probably accelerate.

ben_walther

I'm Ben. Crypto lover, trader, and coder.

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