BITCOIN : FLAG OR DOUBLE TOP
- The market trades inside a slightly bearish channel, which took place following a 6-months bullish trend that sent prices to a new all-time high above 73K.
This consolidation started in March 2024, comes as a correction of the underlying bullish trend so far.
- However, with this week's new sell-off, Bitcoin is testing a key short-term support sell-off around $55,250.00 (38.2% Fibonacci).
Both mid-term moving averages are dangerously reversing, and the RSI indicator evolves inside its oversold zone.
- All these bearish technical signs piling up tend to keep investors cautious on the short-term basis.
The market has registered a new market bottom for the first time since the long-term bullish trend started, and a failure to clear the $58,000 level very quickly could dramatically affect market sentiment on this asset by triggering a reversal double top pattern.
On the other hand, until prices break the $55,250.00 level, the consolidation scenario should still be seen as the most likely.
Indeed, some bullish divergences registered by the two last market bottom on a H4 timescale, tend to support this case.
In this configuration, a rebound over the current zone to the upper bound of the channel as a first target, should be the preferred scenario.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
This consolidation started in March 2024, comes as a correction of the underlying bullish trend so far.
- However, with this week's new sell-off, Bitcoin is testing a key short-term support sell-off around $55,250.00 (38.2% Fibonacci).
Both mid-term moving averages are dangerously reversing, and the RSI indicator evolves inside its oversold zone.
- All these bearish technical signs piling up tend to keep investors cautious on the short-term basis.
The market has registered a new market bottom for the first time since the long-term bullish trend started, and a failure to clear the $58,000 level very quickly could dramatically affect market sentiment on this asset by triggering a reversal double top pattern.
On the other hand, until prices break the $55,250.00 level, the consolidation scenario should still be seen as the most likely.
Indeed, some bullish divergences registered by the two last market bottom on a H4 timescale, tend to support this case.
In this configuration, a rebound over the current zone to the upper bound of the channel as a first target, should be the preferred scenario.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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