Bitcoin (BTC) is getting closer to breaking the downtrend every passing day. Some would argue that we are already in the clear but Bitcoin has to close above the downtrend line and mark two consecutive green candles on the daily chart to confirm a bullish setup. While the big spike that resulted in liquidation of millions of dollars worth of BTC Short Positions was confidence inspiring, it is pertinent to note that the spike itself was mainly the consequence of shorts getting liquidated. However, we did continue to see some bullish sentiment as bears ran for their lives and bulls celebrated a victory.
While I do not believe we are in the clear yet, there is a more important argument of how it becomes easier to turn the markets around as Bitcoin (BTC) gets lower. If you look at the yellow wedge on the chart, the lower the price falls, the shorter the range becomes for trading within the wedge. This means, eventually it has to break out at some point. However, it is important to note that in markets like these, the obvious seldom happens. So, you have to be on the lookout for opportunities. At the same time, it is important to maintain a level head and keep an eye on the price action without being carried away by emotions.
Great anaylsis