Hi friends! Welcome to this update analysis on Bitcoin! As we can see on the four hour chart, BTC has formed a series of head and shoulders patterns. The one on the right, has broken to the downside, and price action has fallen into a bear flag. Additionally, the volume indicator is mostly red, and the 50 EMA (in orange) is about to cross below the 200 EMA (in purple.) In technical analysis, this is known as a "death cross." It's a powerful indicator that shows that the price average of the last 50 periods, is lower then the last 200 periods, and that often precedes further downside. Looking at the bear flag, we can see that it is below the 50 EMA, and the 200 EMA, and building above the Critical Support level. A breakdown seems imminent, unless the bulls can somehow manage to get back above the 50 EMA, and form some higher highs. That isn't likely to happen though. Bitcoin is pounding away at support — and if it knocks long enough, the trapdoor will eventually open. Breaking the "Critical Support" level, should cause BTC to plummet to the 61.8% retracement level, around $11,200, where it is likely to find some support. Ultimately, as I've said so many times, BTC could quickly fall below $9,000. Please like, comment, follow, and share on social media. This has been your fearless market guide — your virtual buddy — M.P.C. and I'm out!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-