Are you looking to navigate the complex world of the stock market and make informed investment decisions? Look no further than Extreme Investor Network for valuable insights and analysis. In today’s blog post, we’ll discuss the current market scenario and provide you with unique information to help you stay ahead of the curve.
Bullish Scenario: Bull Wedge, Bull Flag
In the current market environment, we are seeing the potential formation of a bull wedge pattern within a large bull flag consolidation pattern. These are both trend continuation patterns that typically indicate a move to the upside. However, it is important to note that these patterns are not confirmed until there is an upside breakout. Until then, there is still downside risk in the market. To shift the momentum to the bullish side, we would need to see a decisive rally above 67,226.
Bearish Signs Dominate
Despite the potential bullish patterns, bearish signs are currently dominating the market. Bitcoin, for example, has been solidly rejected from resistance around the 20-Day MA, leading to intensified selling pressure. The weekly chart recently signaled a breakdown when Bitcoin dropped below 62,389, and the downtrend is accelerating. The moving averages are also indicating a bearish trend, with the 20-Day MA crossing below the 50-Day MA and acting as resistance.
First Lower Target is 56,159
If the bearish wedge pattern continues to play out and the price of Bitcoin remains within its boundaries, we could see an eventual downside breakout. The first lower target to watch for is around 56,159, which is a key level based on a 50% retracement and a falling ABCD pattern. If Bitcoin continues to decline from there, the prior trend high of 53,000 becomes the next target, followed by 51,639.
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