Taking a step back and looking at the big picture for BTC we can see the bear pennant formed. Pennant being a continuation pattern, we can expect to continue the downtrend and break down from here with our support zones as follows -
7050 - pennant support where we could see one more bounce back up to around 8900 to test the pennant resistance, if we fail to break up from there, we can expect quite a big drop to the following supports
6550 - double bottom with the previous dip at the beginning of April
5900 - double bottom from low in Feb
3500 - first support from before last years bull run
Trade options-
1) Sell orders below the pennant support for a short with targets just above the mentioned supports. OR if you are a risk taker, open a short now and add to it once we break through support.
2) Buy orders just above the pennant support for a long scalp up to 8900 (pennant resistance) sell half your position and set a stop loss just below to protect your profits in case we are rejected by the resistance. OR for those bulls out there, open a long now and add to it if we fall toward the pennant support.
7050 - pennant support where we could see one more bounce back up to around 8900 to test the pennant resistance, if we fail to break up from there, we can expect quite a big drop to the following supports
6550 - double bottom with the previous dip at the beginning of April
5900 - double bottom from low in Feb
3500 - first support from before last years bull run
Trade options-
1) Sell orders below the pennant support for a short with targets just above the mentioned supports. OR if you are a risk taker, open a short now and add to it once we break through support.
2) Buy orders just above the pennant support for a long scalp up to 8900 (pennant resistance) sell half your position and set a stop loss just below to protect your profits in case we are rejected by the resistance. OR for those bulls out there, open a long now and add to it if we fall toward the pennant support.
Kommentera:
We have had a strong bounce off the pennant support as expected. We are pushing up against the first resistance at 7500-7550, followed by 7800, 8200 ichi cloud then 8550 and the pennant resistance at 9000-9080. Volume is still quite low, RSI has found support and is neutral turning bull and MACD the same, looking to cross bull, however, needs that spike in volume to push it. Still overall very oversold, a lot of room for a nice spike up to the pennant resistance where we will need more data from there.
