Bitcoin: Technical Analysis
As you can see above and below, in bitcoin's daily chart, the bullish trend line is broken and the price has retested this trendline from the other side. I believe bitcoin has entered into a BEAR market and yesterday's bounce or rally is not going to last very long. In fact, I wouldn't be surprised if bitcoin tumbles tonight.
The Bullish Case
In case the rally continues on and breaks the immature bearish trendline that have been developing in the daily chart, as you can see below, I would expect the price to retest the highs at approximately 3000 and then drop, forming a double top trend reversal pattern at 3000 while at the same time retesting the broken bullish trendline from the other side for a second time.
The Bearish Case
As I tried to explain above, I am personally bearish on BTC/USD regardless of what the other cryptos are going to do in the mid-term. I would be very surprised to see BTC/USD above 3000 before at least retesting the recent lows at approximately 2000 first. Should the downside continue to grind lower and trade below 2000 for at least a couple of days, I will expect to see the price drop to almost 1000 next.
Don't forget to UPVOTE, COMMENT, and/or RESTEEM!
UPVOTE, COMMENT, and/or RESTEEM!