Bitcoin 4-Hour Chart — Don’t Be Fooled by “Bear Signals”
I’ve seen a lot of analysis of bearish patterns on the Bitcoin 1-hour chart. If you’ve done the same and have started to worry, you should relax and remember that technical analysis is more than just drawing lines!
When it comes to chart patterns, volume is often as important as the pattern itself. A pattern without volume confirmation is just a good guess. This is exactly why the Bear Flag pattern makes no sense! This bearish continuation pattern is driven by falling volume! In other words, the price gradually recovers while the buying power disappears.
Currently, we have the exact opposite. As the price goes higher, the volume increases!
Does this mean a break from the downtrend? Absolutely not!
While Bitcoin has recovered somewhat, it has not yet initiated a true reversal. 56.8k is the first intermediate target. To be truly bullish, Bitcoin must return above 57.5k and challenge 60k.
As before, the US markets will be decisive today. If they continue to move lower, Bitcoin will move lower and test 52.5k again.
This is not a good form of long-term trading at the moment, but it is a perfect environment for some short-term scalping transactions!
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