Chart Pattern Analysis Of Bitcoin

From K1 to K3,
It is a bearish three soldiers stalled pattern.
The sharply increased supply pressure also verified the resistance of the historic highest price area.
It is likely that a month scale consolidation process from K3 will continue.

So, if K4 price up to test the resistance of 2/1 Gann line,
I will try to partly decrease my long positions.

Comment:

K1 and K2 is a strong bearish engulfing pattern,
It followed a bearish three soldiers stalled pattern.
It verified the strong resistance of the historic highest price.
It seems that a “V” type reversal bear market or a bullish consolidation process had started from K1.

K2 failed to close below K1,
And the supply sharply decreased.
It is more likely that a large scale consolidation is on the way.

The problem of the bull market is lacking enough demands after a long term advancing from wave(1) to wave(3),
And the supply pressure temporarily sharply increased at K1.
It is likely that the supposed consolidation is similar to wave(2).

50K and 6-7 months is a possible price and time target of the correction.
And then, wave(5) will likely moving to 140K.

During the consolidation period,
Some other crypto tokens such as Near\BNB may start a new bull run earlier that BTC.

Sell-61255/Stop-63000/Target-51000

Comment:

After a bearish engulfing pattern of K1 and K2,
K3 failed to close upon the resistance.
It verified the effectiveness of the resistance.
Both the demand and supply pressure are at low level temporarily.
It seems that K3 is in the journey of a Wave(B) of a month scale consolidation process.

If the following candles successfully break down to test the support or the lower price of K3 to find the demands,
It is still valuable to buy in.

Overall, it is still in a long term bullish market.
I will not try to short it,
And will allways keep at least half of long positions in the market during the consolidation.