🔥 Bitcoin On The Edge: Bearish Trend Continued?
In my previous BTC analysis I tried to predict the short term movement of BTC. At first, I expected yesterday's rapid drop to have more impact, potentially breaking through the pennant's support line. I didn't expect the NFP data to cause such a strong bullish reversal (+6%), which was in the end short-lived.
Take a look at my previous BTC analysis for reference. I moved some trend lines for better visibility.
As it appears now we're facing a bearish break out of BTC. Yesterday's price action has continued after a small recovery from the NFP data. I've marked the red Reversal Zone as the main point of interest for today. Since the lower trend line of the pennant can be redrawn slightly, I've marked the 36k-35k area as an area of potential reversal of the current bearish trend.
In case a reversal were to happen I'd expect major resistance around 37.5k-38k, since it's both the area of the last local high and the resistance of the major pennant.
If today's candle closes below 35k I'm expecting a further drop of value towards the 31k-30k area, marked as the entry zone. Be aware that the 33.5k support might cause a minor reversal of trend or consolidation. As mentioned before, a pennant pattern during a strong trend is more often than not a continuation pattern, meaning we will continue the downward trend after the pattern has been completed.
The green area would be my ideal entry zone for both BTC and alts, as I'm expecting a strong reversal to take place there.
Happy trading!
Take a look at my previous BTC analysis for reference. I moved some trend lines for better visibility.
As it appears now we're facing a bearish break out of BTC. Yesterday's price action has continued after a small recovery from the NFP data. I've marked the red Reversal Zone as the main point of interest for today. Since the lower trend line of the pennant can be redrawn slightly, I've marked the 36k-35k area as an area of potential reversal of the current bearish trend.
In case a reversal were to happen I'd expect major resistance around 37.5k-38k, since it's both the area of the last local high and the resistance of the major pennant.
If today's candle closes below 35k I'm expecting a further drop of value towards the 31k-30k area, marked as the entry zone. Be aware that the 33.5k support might cause a minor reversal of trend or consolidation. As mentioned before, a pennant pattern during a strong trend is more often than not a continuation pattern, meaning we will continue the downward trend after the pattern has been completed.
The green area would be my ideal entry zone for both BTC and alts, as I'm expecting a strong reversal to take place there.
Happy trading!
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