This will be the only chart you'll need if BTC prints a lower low.
We highlighted 3 areas from which we expect to see a reaction. The last time we did this, each area gave a bounce strong enough to close the trade in profit if you would have bought in the respective area.
On the 10th of Jan BTC fell under the 21 daily MA and on the 19th it confirmed the switch from support to resistance. That being said, we believe that a continuation to the downside it's more likely to happen and you should prepare for a lower low.
Looking at BTC on the weekly TF (BLX) we see the same outcome. BTC is in the middle of a range with 150 weekly MA as resistance and 200 MA as support. The bearish weekly close suggests that BTC could retest the lows of the range and if it creates a lower low we could have a good buying opportunity at the confluence between the diagonal support, horizontal support and 233 weekly MA (which played a very important role in the last bear market).
We highlighted 3 areas from which we expect to see a reaction. The last time we did this, each area gave a bounce strong enough to close the trade in profit if you would have bought in the respective area.
On the 10th of Jan BTC fell under the 21 daily MA and on the 19th it confirmed the switch from support to resistance. That being said, we believe that a continuation to the downside it's more likely to happen and you should prepare for a lower low.
Looking at BTC on the weekly TF (BLX) we see the same outcome. BTC is in the middle of a range with 150 weekly MA as resistance and 200 MA as support. The bearish weekly close suggests that BTC could retest the lows of the range and if it creates a lower low we could have a good buying opportunity at the confluence between the diagonal support, horizontal support and 233 weekly MA (which played a very important role in the last bear market).
Break of support, bear flag + retest. Good RR for a short.