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BTC/USD crypto signal - Bearish flag pattern - 11 Apr 2018

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BTC/USD trading 11 Apr 2018
5/5 of 4 ratings

Crypto market looks damaged

Last week, I ignored the bearish flag on the 4-hour chart, waiting for a rally up to 8000 that didn’t happen. Currently, the crypto market looks seriously damaged with more regulations coming and some US tax issues.

Bearish flag on the 4-hour chart

In my opinion, the near feature doesn’t look very bright, especially for Bitcoin and BCH (Bitcoin Cash), which supporters just keep jiving on twitter. I am not sure who is right and who is wrong, but I suppose some people made outstanding profits in USD on the BCH rally last year. However, in 2018, the cryptocurrencies are moving mostly in one direction: south.

Unlike other traders, I simply don’t see buying power right now that will push Bitcoin higher after this big drop on Monday. It now looks like a bearish flag patter. Comparing that big red candle with the following green ones tells you all. The bulls look frightened, and I don’t see them fighting the bears any time soon.

As I mentioned in my previous analysis, the long-term view remains bearish; any drop below 6800 would signal more selling orders are coming. I would short Bitcoin with stops at 7200, targeting the 6000 level.

In early February, we witnessed Bitcoin dropping to that level, and sooner or later, I would expect it to happen again.

Comments

Pinkman's picture

Boom! What just happened!? After all, the bulls showed up aggressively. I was expecting it to happen last week, but it happened today. My position was stopped out, but I believe it is a good opportunity to short Bitcoin again :)

Pinkman

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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