Bitcoin Bear Flag Broke Down !!
The bitcoin bear flag broke down
Bear flag in bitcoin broke down, now it is forming another bear flag near the support at 11 400 (yellow line), as i said i expect it to go down to at least 9500 before any continuation of a move up.
Indicators bearish , and the price still in the red cloud which could signify also a consolidation in this zone but generally it means that there is some pressure for the price to go downside.
So, where does that leave us? Well, my upside target has been hit, and it has proven to be NASTY resistance. So, I’m not saying that BTC can’t surpass it, but we saw an undeniably negative reaction from my exact target. Now, we have to look for continuation. We need to watch BTC carefully, to see if it will continue to close lower on the daily chart , or if it will return to the upside.
With that said, this is the condition that I’m trading on. If BTC returns to the upside, and surpasses and closes above my 13,812 level, then I think we could see a retest of the all time high in a matter of days. HOWEVER, if BTC continues to close lower, particularly below the wick of today’s candle, then I think we could see some dramatic acceleration to the downside. In fact, I think the selling could get very violent here, if we don’t get up above that 13,812 level.
So, we reached my upside target, but there is NO GUARANTEE, that Bitcoin will continue to rise.
On a side note, we are clearly in a parabolic move right now, and I’m becoming increasingly uncomfortable with the nature of Bitcoin right now. Today was a perfect example of how this thing could reverse in an instant, and wipe out huge percentages even faster than they were gained. Greed is at an all time high right now, according to the Bitcoin greed index. People are ridiculously bullish , and that is a big warning sign to me. However, I will stay long until the uptrend is clearly broken.
One more thing on the possibility of BTC retesting 3,000 — I’m not holding my breath. It could definitely happen, but it looks pretty unlikely at this point. Bitcoin is like a freight train from hell right now. I wouldn’t want to stand in its way.