After taking multiple buys, we are now looking at BTC shorts as the trend on H4 tends to be strong bearish sentiment. The structure is being formed lower lows and lower highs. The earlier support, has now turned resistance, is the ultimate level to short at. Now we will be waiting for a short position at the resistance level with a bearish engulfing or a pinbar.

The bearish channel has been formed with the lower base of trendline being rejected once again for the market to take the corrective move. The upper band of the trendline needs to be respected at the resistance level in order to confluence with the technical factor of the resistance.

The retracement level of 61.8% is the confluence level which aligns with the resistance and has the potential to form a bearish impulse further towards the downside.

Both the EMA's are bearish and have a bearish death cross. The EMA 50 has been breached for the breakout sells and needs a retest at the EMA. This EMA retest might be happening at the resistance level along with the retracement and upper band trendline and EMA 50 retest.

Although both the oscillators are in an over sold region, we need the neutralized levels at the same level of resistance where markets will be neutralized and looking towards another bearish leg. These levels will be the one where we need to take and look out for a short position.

The reason we have turned our bias bearish on BTC is because a strong support has been breached. This breach of support will push the btc towards another lower low which resides at the 27k price.

Bitcoin ranging to push down

May 21 2022