Hello Traders,

Here is my analysis for Bitcoin over the coming days/week.

This analysis is on the Daily chart , I wanted to show the overall Macro trend to help you better understand why I am still Bearish on Bitcoin .

First let’s start with the short term targets.
– As you can see there are 3 local resistance levels in the current range. We already hit the 1st level at $42.2K which is where a lot of people took profits.
– The next level is at $42.8K. This is where I will take profits from my long opened at $39.7K. Most likely BTC will get rejected off this level and will trend back to the $40K region. It’s possible that BTC makes it to the 3rd resistance level around $43.2K but it’s a much lower probability.
– Then BTC will break $40K and head to the bottom trend line around $37.5K.
– This will either happen quickly in the next several days, or it could take slightly longer with some consolidation in between.

Whats Next?
– I do not believe that BTC will have another size-able rally up before first trending lower.
– On the macro BTC has formed a perfect Bear Flag pattern. This signals further downside continuation.
– Another reason I don’t think BTC will rally first is because of the speed of the downtrend from $48K. The fact that BTC sold off much quicker than it rallied up indicates that people were eager to sell which is very bearish . This signals that another bearish move is more probable than a bullish one.
-The next target for BTC imo is around $37.5K
– After $37.5K is hit I would expect a very large bounce I’ve we’ve seen the other 2 times this trend line was hit.
– Beyond that I believe the lower trend line will break and the next target would be the low $30k range.

Happy Trading and Best of Luck!