A Possible Turning Point
BTC has lost about 37% of its value in the past 30 days. It all started by hitting the upper boundary of the bearish channel, forming a descending triangle, and a bearish breakout of the pattern thereafter. I was lucky to call the move and made some reasonable profit from it. If curious, click here to view the full analysis of that trade. Meanwhile, I think the downward move has been exhausted and a turning point is close by...
After challenging the 10,000 level, we failed to close above this psychological level. At the same time, this corresponded to the upper boundary of the recent bearish channel. As the bullish momentum faded away, bears took over the market and pushed the price lower and lower. With the help of a couple of bad news, bearish momentum increased so much that both the 8,800 and 7,700 support levels got broken, causing a ~37% decline. However, BTC might be at a turning point. We recently touched the lower boundary of the channel for two times. Each time, bullish momentum quickly increased in the market and a further decline was eliminated. In shorter time frames, this has created a bullish divergence for the MACD. More importantly, the price is also sitting on the lower boundary of a long term bullish trend (shown in blue). This is the same channel that reversed the direction of BTC in late 2018 and created the rally from 3,400 to 13,000.
For now, I have no position in BTC, but I have a feeling that bulls will take over the market and push the price higher. Nevertheless, I need more evidence on the chart to get in a position. Stay tuned for updates. If you found this analysis helpful, please consider supporting the page by liking, sharing, and following. By the way, my previous analysis on Twitter Inc. is already in profit; check it out here...
Cheers!
After challenging the 10,000 level, we failed to close above this psychological level. At the same time, this corresponded to the upper boundary of the recent bearish channel. As the bullish momentum faded away, bears took over the market and pushed the price lower and lower. With the help of a couple of bad news, bearish momentum increased so much that both the 8,800 and 7,700 support levels got broken, causing a ~37% decline. However, BTC might be at a turning point. We recently touched the lower boundary of the channel for two times. Each time, bullish momentum quickly increased in the market and a further decline was eliminated. In shorter time frames, this has created a bullish divergence for the MACD. More importantly, the price is also sitting on the lower boundary of a long term bullish trend (shown in blue). This is the same channel that reversed the direction of BTC in late 2018 and created the rally from 3,400 to 13,000.
For now, I have no position in BTC, but I have a feeling that bulls will take over the market and push the price higher. Nevertheless, I need more evidence on the chart to get in a position. Stay tuned for updates. If you found this analysis helpful, please consider supporting the page by liking, sharing, and following. By the way, my previous analysis on Twitter Inc. is already in profit; check it out here...
Cheers!
Related publications
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.