BTC/USD - Bearish Scenario 3/4/2018
Updated
It looks like we will likely to see either hanging man or evening doji star.
Following the signal, double top pattern may happen and this is perhaps the worst case scenario you could think of BTC.
Here are why -
(1) We are seeing hidden divergence on RSI
(2) Possible bearish crab pattern
(3) We have not yet passed major downtrend on log chart
(4) Also on log chart we are witnessing that it's being rejected from last year's trend line (as seen on chart)
(5) Uncertainty towards the market due to exterior factors.
While browsing through some of the charts on tradingview, I've seen wolfe wave pattern analysis on EUR/JPY where I got my idea from.
While continuation of bullish trend has much, much, much higher probability, it is never wrong to think about possible reversal scenario.
This is absolutely not a recommendation to take short position.
Good luck trading.
Following the signal, double top pattern may happen and this is perhaps the worst case scenario you could think of BTC.
Here are why -
(1) We are seeing hidden divergence on RSI
(2) Possible bearish crab pattern
(3) We have not yet passed major downtrend on log chart
(4) Also on log chart we are witnessing that it's being rejected from last year's trend line (as seen on chart)
(5) Uncertainty towards the market due to exterior factors.
While browsing through some of the charts on tradingview, I've seen wolfe wave pattern analysis on EUR/JPY where I got my idea from.
While continuation of bullish trend has much, much, much higher probability, it is never wrong to think about possible reversal scenario.
This is absolutely not a recommendation to take short position.
Good luck trading.
Note
I found a similar pattern from the dip which has begun from 1/5 until 1/8.
If your entry price is good, you have nothing to worry about until some of the major support breaks.
For those who invested above 11k, it's time to be little more careful.
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