Hi friends! Welcome to this update analysis on BITCOIN! Let's jump right in. Looking at the four hour chart, you can see that BTC
has rolled out of my bear flag
, and has fallen like a dead bird from the sky. Without a doubt, BTC
is the most important coin to follow right now, because it has cascading effects on the entire market. We can see that it is very close to touching the bottom of it's downtrend channel
, where we may discover an explosive presence of buy orders. The MACD
is plummeting, and the sell volume
is consuming the chart, so the bears continue to have undeniable control of this market. If you recall from yesterday's post, I said "My downside target looks like a magnet that's drawing BTC
directly toward it. With that said, it is not a 100% certainty that the target will be met. However, given the aggressive bearishness in this market, I think a test of the bottom of the downtrend channel
(in pink) is highly likely." We are now within striking distance of the bottom of the channel, and I imagine it will be reached before I can publish this chart. What we need to do, is watch to see what happens there. If we get a super powerful reversal off of that level, we can reassess the possibilities. Under those conditions, I would be most interested in seeing how BTC
reacts to the bottom of the green dashed trendline
. However, if we break below, the downtrend channel
, that will signal a severe deterioration in the health of this market, and it will likely produce a capitulation move. Keep your eyes on the bottom of the channel. Trade safe everyone!
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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