Downwards Trend-lines and Channels

Downward Bitcoin Trend Line MT4 Bitcoin Trend Line Indicator

A downward Bitcoin trend line goes above the pattern of lower highs. It connects at least two highs, with the latest one lower. We use MT4 charts for crypto to show examples of this downward Bitcoin trend.

Given the zigzagging nature of downward movements in bitcoin's price, traders commonly plot a bearish trendline for bitcoin, illustrating the general direction of its decline. Within cryptocurrency market analysis, this prevailing price trajectory is recognized by crypto traders as the TREND. In the context of cryptocurrency trading analysis, this downward bitcoin trendline on a chart serves to delineate areas of resistance (a bearish outlook).

Draw Bitcoin Trendline on Downtrend - BTCUSD Downward Trendline and Channel

A bitcoin downtrend happens when the bitcoin price makes a series of lower highs and lower lows. Each price high will be lower than the high before it - lower high, and each low is lower than the low before it - lower low, showing that the bitcoin price is going down.

BTC USD Crypto Downtrend lines become stronger each time the price of bitcoin touches or tests the downward bitcoin trend line but does not go above the bitcoin trend line. A downward bitcoin trend continues to be the general way until this pattern of lower highs and lower lows changes.

In cryptocurrency trading research, if a bitcoin trend line that's going down is broken by movement upwards, it's a technical signal to buy bitcoin, and usually the first sign that the bitcoin prices' downward direction may soon change.

MT4 Bitcoin trend lines indicator for downward Bitcoin trends

To learn drawing and chart analysis for crypto trading, know this as a BTC/USD trader. In a bearish BTCUSD market, it makes lower lows and highs. That sets a down slope. Use those spots to sketch the Bitcoin trend line downward.

To draw a downward bitcoin trend, use resistance lines - two of them, to be exact. When the bitcoin price touches this trend line, you sell and put your stop loss a few pips above the slanting resistance.

Techniques for Drawing Downward Trend Lines and Channels for Bitcoin Analysis

Trading This Downward Bitcoin Trend Market Move

When trading with this bitcoin trend line way, this setup will show which way the price is generally going, so bitcoin traders will only start trades to sell. These are the points where, if the bitcoin price goes back, these points will give big resistance. That is why many sellers will wait for the bitcoin price to go up and hit these retracement points to start sell trades. Bitcoin trades started at these points have a good chance of success with little risk.

Take the Bitcoin example above. A trader could short sell at resistance 1, 2, or 3. Those crypto sells would yield strong profits with little pullback.

Downward Bitcoin Channel MetaTrader 4 Channel Indicator

A downward channel is constructed by charting a line parallel to the existing downward trend line for Bitcoin, subsequently adjusting it until it touches the lowest boundary of the Bitcoin price activity. This action establishes a down-channel, and as long as the Bitcoin price remains contained between these two boundary lines, the general direction of the cryptocurrency market - specifically the bearish orientation of the BTCUSD pair - is considered sustained.

How Do I Draw a Downward Channel?

Trading the Downwards CryptoCurrency Channel

The downward channel is used by cryptocurrency traders to show levels where it's best to take profits. Traders will book some profit once the bitcoin price touches/tests lower channel & wait for another retracement before opening a short sell bitcoin trade again.

MetaTrader 4 Tools for Drawing BTCUSD Crypto Channels

In MetaTrader 4 software, the Lines Toolbar holds tools to draw channel lines on bitcoin charts. If this toolbar does not show on your MT4 BTCUSD platform, click View in the top-left menu next to File. Then pick Toolbars. Check the box for Lines Toolbar to turn it on.

Below is a screenshot of these MT4 tools. Click the MT4 channels drawing tool. Pick the spot on the Bitcoin chart where you want to place it.

MT4 Analysis Charts - Downwards Bitcoin Channels

Draw Bitcoin Trend Lines on MT4 - BTCUSD Downtrend Lines and Channels

MetaTrader 4 Toolbar - MT4 Tools for Drawing Bitcoin Trend Lines & Bitcoin Channels used to obtain these bitcoin trend-line drawing tools is shown above, to draw these bitcoin trend line setups or channels, just select the above MT4 bitcoin trend-line drawing tools shown on the MetaTrader 4 software and select the two points where you want to draw the downward bitcoin trend line.

This BTCUSD trend line trading strategy is one of the simplest and most popular ways crypto traders figure out which way the market's headed.

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