Bitcoin: Bearish Fractal Comparison 4H (Jun. 12)

X Force Global Analysis:


In this analysis, we look at Bitcoin's past price movement, approaching the market from the perspective of analyzing fractals.

Analysis

- The fractal starts with an uptrend, consolidating before a further leg up
- After creating a local high, prices form a 'U' shaped pullback
- Prices then break out to create new highs, before correcting down in a wedge pattern
- Bitcoin consolidates in a bullish descending wedge, before breaking out
- Prices break out with great momentum, only to consolidate before seeing a bearish engulfing candle
- After ranging in a choppy sideways market, Bitcoin attempts to retest previous highs, but is stopped by another bearish engulfing candle
- The Stochastic Oscillator, which is an indicator of momentum used for choppy sideways markets, demonstrates significant trend changes through crossovers

Market Sentiment:

The long short ratios are at 62 to 38, with significantly more long positions than shorts. The market sentiment has remained dominantly bullish for weeks.


What We Believe

We believe that further confirmation ought to be provided for the validity of this fractal analysis. A break and close above significant trend lines, indicating a corrective wave would provide confirmation for a bearish trend.

Trade Safe.