Forflies Crypto

900 dollars dump – here’s why I’m bullish

Bitcoin lost 900 dollars within a bit over 2 days. But that’s not a reason to be bearish; Instead, this looks like a clean rejection by the upper trend line of an ascending channel – and as I mentioned before, this tends to be a bullish pattern for BTC, despite being theoretically a bearish pattern.

Bitcoin then went on to perfectly bounce off the lower trend line, which also lines up with a green ichimoku cloud on the 4h.

However, there are also some signs of danger. The 11,800 dollars level didn’t turn into support, despite being strong resistance before. Bitcoin just dumped right through it. What I’d like to see is an S/R flip at that level once BTC trades above it again.

Ethereum on the other hand saw a nice, clean S/R flip at 400 dollars. I expected that to happen, so I laddered some longs around that level – and as a result, I’m currently in a profitable position.