Welcome friends and haters alike — to this spectacular analysis, brought to you by the often imitated, never duplicated, legendary wizard of the markets! Let's jump right in! Looking at the four hour chart for Bitcoin, we can see that the chart is beginning to produce the continuation breakdown that I had anticipated. The symmetrical triangle did break to the upside, but price has since rolled over, in the direction that I had originally anticipated.
Before we go any further, I've noticed that a lot of the haters out there, seem to think that formations always produce instant moves when they're completed. However, that isn't always the case. You can see on this chart, that BTC formed a huge head and shoulders pattern, at the all-time high, but then traded sideways, forming more subsequent head and shoulders patterns, before finally breaking down. When I called for downside on the original head and shoulders pattern, so many haters crawled out of the woodwork to criticize my analysis. Looking at the chart today, you can see that I was perfectly correct. The same thing is happening now. We formed a bear flag, and I called for downside, but it only dropped to form another bear flag, inside of a symmetrical triangle (which is a continuation pattern.) Obviously the correct call to make is to the downside. That doesn't mean that we will instantly get a move to the downside. You can see that we actually broke out to the upside, but that move failed, and now BTC is poised to head lower. Since we know that BTC is in a downtrend channel, and we've had a succession of bearish patterns and continuation patterns during a downtrend, I'm going to keep the call simple. I'm going to break it down in layman's terms for you, and type it real, real, s-l-o-w. We are in a downtrend channel. This is a bear market. The formations produced, suggest a continuation to the downside, potentially to my bear flag target. No matter what happens going forward, as long as BTC stays between those pretty pink trendlines, this market is headed lower. Was that simple enough?
Initial downside support rests at each low point formed inside of the symmetrical triangle. Below the low formed on the 17th, the next support level would be at the 78.6% retrace. On the upside, the 50 EMA (in orange,) should obviously continue to act as the ceiling in this market.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
@zexheell, I was guessing the end of the left leg to the far left.
hardeight
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Poop, keep’em coming. The Majic Poop Master has spoken! Question, if shorting isn’t available, whats your thoughts on going to cash unti this Bear works itself out?
tigerpause
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@hardeight, If you haven't already then I certainly would. I went to cash for my 'non-traded' btc at around 12k. I'm short on my 'traded' btc to around 7.8k.
MagicPoopCannon
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@hardeight, Although I cannot give financial advice, due to liability issues, I think it’s sound practice to minimize or eliminate bullish exposure, during bear market corrections — unless you are a long-term holder of high yield dividend paying stocks. Nobody knows when the bear market will end. For all we know, it could correct into oblivion. Therefore, I would reserve bullish positions for bull market cycles. The decision is yours. Good luck my friend!
-Magic-
LARC
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Behold the magic dog shit cannon. Keep it up my friendd!
kardia
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@MagicPoopCannon, it seems most people are looking for comfort in the idea that this is merely a correction, but I think it is more than a correction.
s3_00
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@rev214us, yes but based on what?
kardia
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@s3_00, FUD, theft in exchanges, scam ICOs, mainstream media fearmongering and pushing fake news, banks refusing service to people connected to crypto, Warren Buffet saying it's not going to end well, Bitcoin Cash trolls hating on Bitcoin (especially from Roger Ver), Bitconnect, USDT issues, and a number of other things. All of these things have worked together to give Bitcoin a bad reputation.
MagicPoopCannon
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@rev214us, Extreme speculation, uncertain valuations, inexperienced investor demographics, high probability of fraud, and the introduction of futures contracts, are just a few of the triggers that could quickly punish this market beyond recognition.