Bitcoin has been in a continuous bearish trend since it broke the support level at 5700 and shows no signs of reversal at all. In addition, you can see a falling wedge on the 4-hour chart that could raise the price to 3300-3400. In my publication, almost 2 months ago, I was discounting the possibility of such a scenario and, for now, it works quite well The fund is definitely somewhere close, and there are clear indications that large whales are slowly accumulating large amounts of BTC of long-term investors who are selling the currency in such a special way.
In the weekly chart on the right we can see that we are currently testing the 200-day EMA, which is the only hope that the price will rebound from the current levels, but for me that is the only indicator of the bottom. Everything else is bearish, at least in the short term perspective. From the Volume Profile Indicator it can be seen that we are currently in an area of significant resistance and a break below the price level of 4200 will easily take us to the next level of 3300-3400. The next level serves as an extremely important support area established in September 2017. Personally, I hope that around those levels the purchase volume will skyrocket and the price will recover to 5k-6k. To add more meaning to this level of support, if the ascending wedge is met, which can be seen in the 4h chart, (Minimum Price Target), projected from the base of the pattern, is exactly around from that level of 3300. By then, the weekly momentum indicators (both the RSI and Stochastic) will reach extreme oversold levels that, in turn, will give us a signal to buy and we expect to see a strong rebound before the end of this year . But that's just a scenario.
The second scenario I see is that the price will find a fund well below the 3k level. If the triangle will be played (weekly chart), the price drop may accelerate towards 1700-2000 USD. That sounds like a nightmare, but it can be quite possible if the big whales are not satisfied and do not accumulate enough.
However, there is a good opportunity for short-term traders to negotiate in the bear market. You can open a short operation on the break of the falling wedge that points to a price level of 3400. After that, you can open a long-term buying trade, but you will personally be waiting for a background pattern to form.
Tell me what you think about it and share your ideas.
Cheers.
