The Trend is Your Friend! Bitcoin! (BTC)

Hi friends! Welcome to this update analysis on Bitcoin! Let's jump right in! Looking at the four hour chart, we can see that BTC has found some temporary support, at the red trendline. At the moment, BTC is caught between that red support level and the 61.8% retrace. If you'll notice, the 50 EMA (in orange) is quickly falling toward price action. Judging by how resistive the 50 EMA has been, the odds are that it will continue to put any attempted rallies in check. As you can see, I've drawn a blue bear flag to highlight the bearish consolidation pattern that BTC is forming. While I was conducting my analysis, I was trying to determine if BTC had just formed a higher low. My conclusion was that it's too early to know for sure. The bears still have the advantage, so it wouldn't take much for a continuation wave of selling to send this market lower. When I look at this chart, I see a bear market downtrend. Since it is a bear market downtrend, my bias is toward the downside. Until evidence emerges that suggests that this bear market is over, I will continue to lean bearish. Remember people, the trend is your friend! Don't fight it. Since I know that the trend is my friend, I know that the upside will be limited — until I am proven wrong. People who try to catch the bottom of a bear market, usually get destroyed as the market continues to fall. People who trade with the trend, are usually only wrong once, and that's when the trend confirms a reversal. Looking at the MACD, we can see that it has made a bullish crossover, but not on terribly impressive volume or price movement. With that said, don't lose sight of the fact that we've just confirmed the "heavy resistance" level as the ceiling. Going forward, watch to see what happens in the blue bear flag. If BTC breaks to the downside, the formation of a lower low would be highly likely. However, a break to the upside, particularly above the 50 EMA, would be reason to reassess the possibility that we may have formed a higher low. A break above the heavy resistance level would be a very good sign. However, a confirmation that the bear market is over, will likely come from a sustained breakout above the rising black trendline. Remember, this market is different than it used to be. It is now heavily traded by institutional investors, who are generally more sophisticated than the average crypto investor. They want easy money — and that easy money is currently being made on the downside.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-MPC loves you-

-JD-