Short

Major bearish RSI divergence Plus possible H&S Bitcoin

Updated

The failure to form a new higher high is just one of many warning signs that Bitcoin bulls are running out of steam, and the bears are gaining strength. While the channel is still very well intact, this formation indicates that the support level of the channel is weakening and I would probably consider it a bull trap. On a weekly chart this looming correction is even more obvious. A healthy correction would be to test the previous high which is ~$1300 and this also happens to be just about the level of the 200 day MA which as anyone who has any real technical experience will tell you is a very important support level in bull markets and must be testest ever so often to maintain the primary trend and pop bubbles. Right now BTC has found support on the 50 day MA but failed to bounce off it with any real buying pressure. Not to mention, there is a MAJOR BEARISH Divergence showing in the RSI . A correction is needed and looming.

Good Luck I've been short from 2500 but this is just as good. If a HH forms obv close a short but I seriously doubt that.

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Now this is interesting

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I hope you all are still short and did not fall for that bull trap that I warned you about. This is the next leg down, imo. The channel has officially broke ( wait for the close if you wish to be conservative) and the H&S is just waiting on the daily close to be formed.

I am still short and I even added on to my short position on the last bull trap move off of the bottom support level of the channel.

Remember to stay strong and wait until the bottom forms.

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The 100 Day MA is trying to act as support here. Ringing the cash register is never a bad thing, still looking for 1850 or the 200 day ma. Maybe even the weekly MAs!

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Support was found at the 50% Fibonacci level and now it is testing the .618 trend extension level. If the bulls fail to break the .618 level you can look to get short to the retest of the longer term 50% level and then the .618 level would be your tp. We will see what forms.

coltsrule7

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