As I predicted in my last video, bitcoin hammered down through the pennant support after a very weak and unconvincing small bullish rise in price. You may have already went short at a break of the pennant at around $7250 and are now solidly in profit. If not, do not dismay as these pennants often times offer "2nd chance entries". Very often in breaks of a pennant price will pull back to the level-of-breakout and retest. What this would look like with bitcoin is price pulling back to $7250 and re-testing. What we would want to do is watch for any bearish price action signal off of this $7200 level such as a large bearish pin bar, 2 bar reversal, double top, etc. That would then give us the signal we need to get short for the next leg down. The next major support level is 6,000 and a common sense level to cash out on profits. A second possible scenario is price dropping aggressively and not retesting the pennant breakout but rather crashing right down through $6000. In this case we have the same things to watch for which is price to eventually reach exhaustion and begin pulling back up. We would want to watch for price to pull back to the $6,000 range and look for bearish candlestick signals to get short for the next leg down to $5,000.
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My previous analysis
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Something I forgot to mention in my video but this selloff was on HUGE volume. More bearish strength to the breakout.
