bearish continuation pattern

14 mar 2022Morning folks,

Action of the last week is not very impressive as BTC tries to hold on the last 5/8 support area, forming no interest patterns on intraday charts by far. And week chart now provides more important picture. Now it is easy recognize forming bearish pennant, suggesting that downside action should continue. Fundamentally, it is correct, as BTC can't compete with interest-bearing assets, such as Bond and even dividend stocks, while rising interest rates as soon as this week should become another punch, especially if Fed provides more hawkish comments. And this is highly likely with monthly inflation around 12%.

Besides, the price action also shows no signs of recovery. Thus, any attempt to rally was absorbed very fast and traders use any chance to close position as price is coming to 40-45K area. The pullback in recent 2 months has not exceeded 30% of the drop. Hourly chart shows choppy action that is difficult to treat as reversal.

All this stuff makes us stay aside from investing and keep 26K target on the table.