Jumping right in, we see that BTC has indeed fallen downwards, out of its bear flag.
Still trading within the downward trend (in red), we are looking for the lower threshold of the long term support trend line (in blue).
The MACD is printing a slight bullish divergence, signalling a reversal pattern could ensue. If history repeats itself, we should be anticipating a reversal around $7000. For a full blown reversal to occur, the following would be required,
1. Break the 50MA (in green) and the downward channel (in red) - this will coincide with the Ichimoku Leading Span, approx $8000 level.
2. Break the overhead long term resistance (in blue).
3. Volume to come in, and retest the $10,000 psychological barrier.
Item 3 is still highly speculative, so lets take it a step at a time :D
Nonetheless, a level headed investor always measures the likelihood of the alternative playing out. The bearish scenario means breaking the support trend line and followed by downward capitulation (though i highly doubt it).The next stronger support range is at 6000-6500.
*Not financial advice* :)
Still trading within the downward trend (in red), we are looking for the lower threshold of the long term support trend line (in blue).
The MACD is printing a slight bullish divergence, signalling a reversal pattern could ensue. If history repeats itself, we should be anticipating a reversal around $7000. For a full blown reversal to occur, the following would be required,
1. Break the 50MA (in green) and the downward channel (in red) - this will coincide with the Ichimoku Leading Span, approx $8000 level.
2. Break the overhead long term resistance (in blue).
3. Volume to come in, and retest the $10,000 psychological barrier.
Item 3 is still highly speculative, so lets take it a step at a time :D
Nonetheless, a level headed investor always measures the likelihood of the alternative playing out. The bearish scenario means breaking the support trend line and followed by downward capitulation (though i highly doubt it).The next stronger support range is at 6000-6500.
*Not financial advice* :)