BTC 07.11.2019 – Broken upward channel and bear flag in creation

Industry news:

Multicoin, Coinbase Ventures, BlueYard Capital and Collaborative Fund are backing a new protocol to help developers more smoothly interact with decentralized file storage. The investment takes the form of a $1.5 million seed round in data startup Textile.

Launching on the surface as a decentralized answer to Flickr, Textile has a larger mission: to help users control their own data by using the Interplanetary File System (IPFS). IPFS is an open protocol built by Protocol Labs, the same company that created the Filecoin ICO.

Technical view:

analytics5d2740fe114ff.jpg

As I expected, the strong resistance at $13.000 held very successfully and we got strong drop after the test. All four downward targets from yesterday got hit. Anyway, there is still more downside yet to come since there was a breakout of the upward channel (red up-sloping lines), which is good confirmation that downside pressure is strong. Most recently I found bear flag in creation on the 1H time-frame, which is good confirmation for further downside after the break of the channel. Downward targets are set at the price of $10.726 and at $9.751. As long as the BTC is trading below $13.000, I would watch for selling opportunities.

Important upward reference points:

$11.700 – Previous swing low acting like resistance (yellow rectangle)

$12.100 – Previous hourly swing high

Important downward reference points:

$10.726 – FE 61.8% (green rectangle)

$9.751 – Important swing low

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