Bitcoin - Bearish Flag & Bearish Divergence..basically Bearish!

Sep 21, 2018

We just had a short squeeze up to $6740 but I don't buy it (MA100 acting as strong resistance on the daily and overbought conditions in the short term). Don't FOMO into the bull trap, I expect the 4 hr candle to close back below $6600.

Following on from my previous chart, Bitcoin has formed a bearish flag pattern and there is also bearish divergence on the 4hr chart. So now we have a descending triangle on the daily chart , a bearish flag and bearish divergence.

That along with the Mt Gox creditors meeting at the end of the month and the drop in trading interest (reflected by the gradual drop in volume on the daily chart ), it's safe to say that the path of least resistance is most probably to the downside. The Van Eck ETF decision was deferred to a future date, however there are enough potential catalysts to trigger the next crash in price.

Projected target: $5500

Previous chart:

Sep 21, 2018

Note

I stand corrected with the Bearish divergence. That was actually the hidden Bullish divergence where we had the previous spike so that ship has sailed.

I still believe we go down from here since we still have bearish chart patterns and if you look at the bigger picture on the weekly chart, we are hitting a significant level of horizontal and trend line resistance on the RSI. Stochastics is sloping downards with momentum and there is still plenty of room to the downside.

Either way we are fast approaching crunch time.