Bitcoin appears to be forming a bear flag

Crypto

Bitcoin appears to be forming a bear flag. This means we are consolidating in the short-term bear trend & are likely to break lower for a sell signal. We failed a break above trend line resistance so bears appear to remain in control.

Ripple XRP has failed at an important 38.2% Fibonacci & short-term moving average resistance at 1.0515/1.0545 all this week to leave a more negative outlook for today. Shorts need stops above 1.1100.

Ethereum still holding strong resistance at 2750/2800 all this week to leave a more negative outlook for today. A break above 2850 is a buy signal.

Daily analysis

Bitcoin in a bear flag from support at 34800/500 up to what should be key resistance at 38500/39500 today. A break above 4000 is a buy signal but only targets 200 day moving average resistance at 41500/42500. Try shorts here, stop above 43500.

Very minor support at 37000 but below here can target is a short term sell signaltargeting 35500/300. A break below 35000 is a sell signal targeting 3500, perhaps as far as 31100/3000. Although I had us buying here last time, this time it is more likely we will break lower to my ultimate target for the head & shoulders sell signal at27500/27000.

Ripple shorts at strong resistance at 1.0515/1.0545 re-target 0.9400/9300. On further losses look for 0.9000/0.8980 & 0.8050/30. Again expect very important 6-month trend line & 200-day moving average support at 0.7040-0.6558 to hold the downside. Brave bulls or longer-term investors can try longs with stops below 0.6400. If prices hold below here then all is lost for the bulls & a further significant correction to the downside looks likely. Initially, we can target 0.5100 – 0.4800.

We are testing important 38.2% Fibonacci & short-term moving average resistance at 1.0515/1.0545. Shorts need stops above 1.1100. A break higher is a buy signaltargeting 1.1700/1.1800, perhaps as far as 1.3000/1.3500.

Ethereum shorts at strong resistance at 2750/2800 need stops above 2850. A break higher is a buy signal targeting 3050/3100, perhaps as far as strong resistance at3300/3400. Shorts need stops above 3500.

Holding first resistance at 2750/2800 re-targets 2550/2500, perhaps as far as minor support at 2380/2350. If we continue lower in the 3-week bear trend, look for2140/30 before a retest of important 61.8% Fibonacci support at 1728.

Chart

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