My Last (BTC) Charts Were From The Future. Bitcoin! =D

Hi friends! Welcome to this analysis of the four hour BTC chart. Let's jump right in. Looking at the chart, we can see that Bitcoin has just confirmed the 50% retrace as overhead resistance, and is now heading lower. If you recall, this is exactly what I said was likely to happen, a few BTC posts ago. We can see that BTC broke below the critical 50% retrace, formed a bear flag, and traded right back up into the resistance level. BTC was able to get above the 50 EMA (in orange,) only to test the heavy resistance level and quickly retreat. So, what is this telling us? It's telling us that the 50% retrace once acted as support, then BTC broke that support, and then later, confirmed it as resistance. Moves like this are continuation patterns. Do you remember my "Dead Cat Bounce" post from a few days ago? I basically told you that this would happen, and that BTC was likely forming a dead cat bounce. Since the DCB is a continuation pattern, we can expect it to continue. That means the pattern should now form a lower low, which would send BTC below the low made on the 17th. Oh look, that's perfectly inline with my bear flag target on the bottom of the chart. Huh. Funny how those things work. Anyway, we can see that the MACD is crossing over bearish, and is back below the zero line, which is a short-term sell signal. All-in-all, the ceiling has been defined, and it's not to far above us. The floor, on the other hand, is much much lower.

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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-JD-