Bitcoin continues to make higher highs and higher lows, which is indicative of a market that remains in a bull trend. However, I am beginning to question the advance. There are a number of reasons to embrace a bit of caution.
Here is the daily chart:
This setup was well respected by pricetime at the 1ST, 3RD and 4TH arc pairs. Note how price was turned away by the 3rd and 4th pairs.
Noting that, the fact that the 5th arc pair is now very close gives one pause. The 5th arc pair is often a trend-stopper.
Next, let’s look at a close-up of this chart:
The asset is in an ascending pennant, which is often, counter-intuitively, a bearish pattern.
So, each of these charts is approaching resistance, and we see evidence of a bearish chart pattern. Lets look at an 8-day chart:
Here we see that pricetime is in a very ominous place. It is simultaneously at the end of the 1st square, the top of the 2nd square, and kissing the 2nd arc of the 2nd pair.
This long trade suddenly looks much too risky for my blood. I have closed my longs and have adopted a bearish stance, looking for signs that a reversal may begin. As I have often stressed, we don’t need to rush into such a position. Wait for confirmation…
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Image from Shutterstock.
Source : cryptocoinsnews.com
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