BTCUSD Suggesting Another Bear Flagpole
The Short-term returns can never make up for the long-term losses.
This is what it might look like from the latest Bitcoin price which, for over the weekend, climbed over 7.5 percent and promised an extended breakout, but was unable to achieve it. This week started with minor pullbacks from the early 6550-fiat level during the Asian trading session. But the increasing selling sentiment surrounding the psychological resistance level finally eliminated the gains, driving it back towards 6012-6138 area.
Basically, we are seeing BTC/USD making a flagpole looking for a breakout. It is the part of an overall bearish pennant movement seen since the pair created the previous peak at 8512-fiat.there is an expected hop-on-hop-off level for day traders if the price consolidates sideways. However, as the volume declines, and a bias difference is created, an extended bearish momentum would follow.
Aside from that, we are on a bearish bias on a 4H chart. Clearly, the BTC/USD pair is trading below its 200H, 100H and 50H moving average. The RSI and Stochastic Oscillator indicators, at the same time, are falling back to the neutral range. There remains some strong buying sentiment in 6012-6138, yet it would be of no use until the market test an upside breakout around 6500-area.
