Hi friends!
I think BItcoin is printing a bear flag (in white) at the moment. Some might consider this an ascending channel, but I think the uptrend in this channel is far too weak to call this an ascending channel. Bitcoin did not even make it to the 0.382 Fibonacci retracement level within a few days after a violent 45% drop. That is pretty weak in my opinion! There simply are not a lot of buyers.
If Bitcoin continues upwards, it will soon face resistance from the 100 EMA, which I consider to be important.
The trading volume also indicates, that the recent "bottom" of $3500 was probably not even a mid-term bottom. On that day the total volume according to coinmarketcap was $ 8 Billon. On Feb. 6th, the volume was $ 14 Billion, and I want to see that kind of volume before I call a mid- or long term bottom.
If BTC breaks down from the bear flag, I expect another 45% drop to $2400 levels. If BTC breaks out of the bear flag to the upside, the pattern will be invalidated.
That is how I see it!
Cheers
-Znarfomat_
I think BItcoin is printing a bear flag (in white) at the moment. Some might consider this an ascending channel, but I think the uptrend in this channel is far too weak to call this an ascending channel. Bitcoin did not even make it to the 0.382 Fibonacci retracement level within a few days after a violent 45% drop. That is pretty weak in my opinion! There simply are not a lot of buyers.
If Bitcoin continues upwards, it will soon face resistance from the 100 EMA, which I consider to be important.
The trading volume also indicates, that the recent "bottom" of $3500 was probably not even a mid-term bottom. On that day the total volume according to coinmarketcap was $ 8 Billon. On Feb. 6th, the volume was $ 14 Billion, and I want to see that kind of volume before I call a mid- or long term bottom.
If BTC breaks down from the bear flag, I expect another 45% drop to $2400 levels. If BTC breaks out of the bear flag to the upside, the pattern will be invalidated.
That is how I see it!
Cheers
-Znarfomat_