Let's get into Bitcoin TA. Looking at the 4h Btc Chart, we can see that the bulls were fighting hard to break out of the resistance line, 8500 USD.
However, they were soon pulled back by the bears. There are two reasons for this:-
- The resistance level is pretty strong (Where Black dotted line and Black downtrend line converge)
- There is a lot of FUD in the market yet.
Soon after being rejected, we can see that a H&S pattern in getting formed. Right now we are in the making of Right shoulder. Upon completion i wouldn't be surprised if we retrace to 6900-7200, which is around 78,6 retracement level( yellow line).
Looking at this situation, and this is my personal opinion, we can see a bounce back at 7200. But for now there is lack of trust in the market.
DISCLAIMER
Let me make it clear. No trader is right all the time. A well known trader and Technical analysis Author, Peter brandt, wrote in his book that mostly good traders are 20% right in their trades. But that is enough in long run if you manage your money properly. I might catch hatred over my btc projection of 7200 or lower but for you to be a good trader be patient and above all don't have emotional sentiments attached to a stock, crypto. Because in the end we all are here to enjoy and get rich.
Thank you so much for taking your time out and reading my post. Love you all.