DETAILED BITCOIN BREAKDOWN⁣: LONG POST - 3/2/19steemCreated with Sketch.

in bitcoin •  19 days ago

The trend pattern (red lines) that was being built was constantly breaking and making a new bottom trend line. At the same time, the​ upper trend stayed the same. This shows the ​momentum of selling pressure was higher than buying pressure. For the last formed trend line, it can be seen as having tested it from below and now sinking or making a new lower bound (blue line). Either way, it's imperative to keep a watch here to see where the pressure swings.⁣

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BTC continues to make daily lows after the hit of $4240, which is still the KEY resistance at this stage. A break above $4240 is the only thing that can convince me we're mid term bullish.⁣

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4 hour

On the 4 hour timeframe, we made higher highs and higher Lowe's off late. But buy volume has been reducing which leads to me the conclusion that we have one last leg to go. Using a Fibonacci retracement, my target for this is 3535-3570. Either way, this further confirms my bearish bias.⁣

Volume is something not everyone considers while charting. It is easily one of the most crucial factors because it represents sentiment and behaviour. October 11 to November 14 we saw the daily volume almost double. This was the indication that led me to think we would break into our big bear move. On 14 November, Bitcoin slipped below 6k into the low $5000's. On 20 Nov it fell to $4050. The volume was a clear indication despite indecisive price action at the time. Right now we see declining buy and sell volume which means uncertainty is high. We need to keep a look out for volume to see which way sentiment is shifting. ⁣

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Volume Profile

It still seems like there is some room to go down before a possible bullish sequence as sell volume is still higher than buy volume. ⁣


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