BTC - Still in pattern

26 May 2022

Believe it or not, BTC made a fadeout move to the downside and was still able to pump back into its bear flag formation without a 4H confirmation close below. This means we could be more in a descending triangle (right chart) rather than a bear flag (left chart). Honestly, once the support (green box) of the descending triangle is broken, it would theoretically act as a trap door for a major move down. Both these patterns are bearish, but if the market movers really wanted to surprise people, then we could break above the resistance trend line and still make the move to $34,000-36,000. My bias is still with the trend to the downside, but after seeing the buying pressure from that wick I am cautious shorting here.