Here is my chart on the 4 hour for BTC with pattern measurements supporting the 3200 mark on a the pennant flag that has formed on the 1 hour chart.
The RSI is low right now so I am anticipating a move back up to test the resistance where we will most likely fail and fall. However, there is A LOT of support under us right now that will take a decent sized sell volume to break. I do believe it will probably break as we may see a red volume candle spike as we come back down from the resistance test.
How far will we likely fall? Using the penant measure method (it’s not an exact science so there is some variation in there) but you can see the top points of the measure stick labeled “1” and the bottoms labeled “2”. You measure the fall from the resistance and you will see it lands perfectly on the 3240 resistance line that I have and mentioned above.
Will it happen? No one really knows. Maybe we break the resistance on the way back up…maybe we don’t actually go back up and simply fall tonight. Regardless, this is a much more reasonable expectation based on actual TA methods. It’s possible we drop to 1221, but highly unlikely. We have A LOT of support to break before that can happen.
