$BYBIT:BTCUSD
Many are anticipating a dead cat bounce and as we start to dive into some TA, maybe there is some merit to the argument. BTC has crossed the 200SMA following the recent sell-off after formation of the Wyckoff Distribution #1 (bearish) and over the last couple days on the daily chart has tested this moving average as a dynamic line of resistance.
Bulls:
- We see on the RSI that we enter great oversold territory and the momentum indicator expects some buyers to enter the market.
- On the MACD, the signal line is about to cross the MACD line which indicates bullishness.
- On the MACD we see the averages hovering at Pre-COVID levels ~(-4000) which is bound to increase (poor TA but must be stated).
- Also we can see great reductions in selling pressure as the volume is starting to peak back into the green.
Bears:
- Weekly time frame looks very different with the signal line far from returning toward the MACD line.
- RSI lies smack between 30 and 60 and coming from the top end of the figures, a trend continuation is more likely than reversal (likely for RSI to keep reaching for 30).
Bitcoin at 30k looks to be a solid support and if broken may lead to a larger sell-off.
Two possible scenarios:
1. Breaks through 200SMA resistance, tests the 0.618 Fib Retracement level and breaks through (or doesn't) which it will then use support to rally.
2. Does not break through 200SMA and tests 30k before rallying upward. Trade on the bounce.
Overall bullishness in the medium term and waiting for a bounce.
Many are anticipating a dead cat bounce and as we start to dive into some TA, maybe there is some merit to the argument. BTC has crossed the 200SMA following the recent sell-off after formation of the Wyckoff Distribution #1 (bearish) and over the last couple days on the daily chart has tested this moving average as a dynamic line of resistance.
Bulls:
- We see on the RSI that we enter great oversold territory and the momentum indicator expects some buyers to enter the market.
- On the MACD, the signal line is about to cross the MACD line which indicates bullishness.
- On the MACD we see the averages hovering at Pre-COVID levels ~(-4000) which is bound to increase (poor TA but must be stated).
- Also we can see great reductions in selling pressure as the volume is starting to peak back into the green.
Bears:
- Weekly time frame looks very different with the signal line far from returning toward the MACD line.
- RSI lies smack between 30 and 60 and coming from the top end of the figures, a trend continuation is more likely than reversal (likely for RSI to keep reaching for 30).
Bitcoin at 30k looks to be a solid support and if broken may lead to a larger sell-off.
Two possible scenarios:
1. Breaks through 200SMA resistance, tests the 0.618 Fib Retracement level and breaks through (or doesn't) which it will then use support to rally.
2. Does not break through 200SMA and tests 30k before rallying upward. Trade on the bounce.
Overall bullishness in the medium term and waiting for a bounce.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.