Hi friends! Welcome to this update analysis on Bitcoin! Let's get it! Looking at the four hour chart, you can see that BTC remains inside of a bear flag consolidation. It has surpassed the pink trendline, but it's done so in the form of a bear flag. You can see that the flag is getting to be a bit extended, so we can use the 20 EMA (in blue) as an indicator of it's survival. In other words, if BTC rallies up above the 20 EMA, we con probably throw out the bear flag as a possibility. Looking at the volume, you can see that it has been steadily declining, while BTC has been in this bear flag consolidation. The decline in volume increases it's legitimacy as a bear flag, so we really have to see how it this price action responds to the 20 EMA, if/when BTC gets up there. During this entire downtrend, from 3/5, BTC hasn't tested the 20 EMA a single time, so it wouldn't surprise me if we test it in the near future. On the MACD, you can see that a bullish crossover has occurred, almost perfectly on the rising dotted MACD support level.
So, overall, we have some mixed signals here. There is a bear flag, that has crossed above the pink trendline, while a bullish MACD crossover has occurred. The bear flag has falling resistance levels passing through it, and decreasing volume, which is expected from the flag pattern. Therefore, until we see a move below the bear flag, or above the 20 EMA, it's best to exercise caution here.
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.***
-Magic loves you-
-JD-
So, overall, we have some mixed signals here. There is a bear flag, that has crossed above the pink trendline, while a bullish MACD crossover has occurred. The bear flag has falling resistance levels passing through it, and decreasing volume, which is expected from the flag pattern. Therefore, until we see a move below the bear flag, or above the 20 EMA, it's best to exercise caution here.
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.***
-Magic loves you-
-JD-