My long term view remains bearish
As my previous analyses say, I have been shorting Bitcoin in recent weeks and my long-term view remains bearish. However, BTC is in a new phase and I believe a bullish momentum is rising, targeting the 8000 level. If we reach that level, a new drop in Bitcoin prices is likely to happen.
Bearish flag pattern
My idea is mostly based on price action. A bearish flag pattern has appeared on the 4-hour charts, but in my opinion, this pattern will not complete and price is likely to move north. Currently, BTCUSD is trading around 7000, which I believe is ideal for an entry with stops at 6800. A drop below 6800 doesn’t necessarily mean that we are going to witness a new low at 6000.
In my view, the crypto sharks (hedge funds) are planning a new rally, and they would be more than happy to see some enthusiastic bulls before they short it again. Moving toward 8000 would be ideal because then everyone would turn bullish again.
The crypto market seems emotional and easy to manipulate, but you have to consider what the big sharks would do next to have a better chance of profiting with short-term positions.