The sceanrio is simple.
- 1. Bitcoin is in a strong bear-trend. The first move went down from 17174 near point 3 to 9005.
2. Right now, the price of the Bitcoin is in a consolidation from 9005 up to 12787. As mentioned above, Bulls and Bears are involved in fight at this level. Who will win? Which direction will Bitcoin go?
3. As we can only interpret a chart in connection with the news, I say that we will see a crash this coming week and Bitcoin will fall to the level of 5568.
Read more in my previous idea. why Bitcoin is that much under pressure:
The price movements of Bitcoin follow exatly the story book of my predecessor idea.
However, none of my trading platforms is open on a Sunday while Bitcoin is traded 24/7. Does someone know a licenced trading platform that is open 24/7? Your advice is welcome!
Right now, the price is locked inside a small flag, marked as “trend continuation pattern” in the chart below. I expect an outbreak to the downside.
Over the weekend, the test of the red dashed line happened with low volumes. We have to expect that the traders want to test that important red line again when the European market opens at 09:00 UTC+1 and the US market at 15:00 UTC+1. UTC+1 is the time in Central Europe: Zurich, Berlin, Amsterdam.
Alternatively, a crash could occur if panic spreads.
We still see the Americans testing the upside. After a while, they will give up and the price of the Bitcoin will fall to 9005 and the showdown between Bulls and Bears starts.
This was an action rich weekend. Therefore, we will look back to the most important events.
1. BTCUSD stayed inside the flag, the trend continuation pattern was climbing up to the red dashed line at 12787.
2. Around that important red line, a quarrel between Bulls and Bears flared up and the Bears won.
3. As predicted, the flag was broken on the lower side and the price is moving downwards. The target is 5568.
How will the price further develop?
There are two possibilities:
a) When Asian markets open, the lower side of the flag will propably get tested again. The same may happen when European markets open as well as US markets. If the lower borderline of the flag, which became a resistande line, holds, the price will start dropping again. We have to take in consideration the possibility of three major pull backs throughout Monday.
b) Alternatively, if panic breaks out, we will see a fast drop in the price of Bitcoin.