Descending Channel Broke Bullish

5 mar 2021

BTC broke descending channel ( bull flag ). First target was hit $48332, next target is 49700ish. But I would really like to see it hit $50-52K (the purple bubble), thus complete the inverted head and shoulders pattern. If it does, expect a small correction and then we are back up to the top.

Things to consider

-a break out of the channel doesn’t mean a solid bull run, sometimes the price revisits the 4hr low (orange line) to confirm support before taking off. (Short term bullish )

- 2x hammer candles on the 4hr makes for a good bullish argument (Strong short term Bullish)

- RSI showing hidden bearish divergence, so I expect the RSI to climb to over bought quickly, but this happens every time a new bull run try’s to take out the top price. (Weak bearish)

- TD SEQUENTIAL (weekly) showing heavy bearish correction needed, just say’n, but sometimes it takes weeks in a parabolic bull run. I would consider it worth noting but not a heavy indicator. (Weak Bearish)

- Volume low, can signify large price swings

- Bearish HNS pattern can still play out, but a break above 50K will make it unlikely. Price needs to stay above 43K (Blue dotted line).

- Price needs to stay above 46k for the next 2days and 9hours otherwise we will have a mean inverted hammer candle on the weekly (currently neutral, but could be powerfully bearish )

So, this is play at your own risk situation. Plenty of potentially bearish indications, but as of right now, I’m (ever so) slightly favouring the bullish side.