BITCOIN: CALM BEFORE THE STORM!
X FORCE CRYPTO ANALYSIS:
We have been trading in a choppy sideways range for the past few weeks. Due to lack of volatility, we are seeing volume dry out, leading to no significant momentum and strength supports during small breakouts. We are currently trading within a descending channel, and we would like to take this opportunity to discuss the potential bullish and bearish scenarios we could see play out.
Bullish Scenario
- We have extremely strong historical support at 8k.
- This could potentially be a descending channel of a bigger bull flag that will play out
- We have seen a golden cross on the moving average convergence divergence indicator (MACD)
Bearish Scenario
- As we are technically trading within a range of a descending channel, we are technically still bearish.
- There is significant resistance at the 1.5 Fibonacci level, which we have only temporarily broken.
- We could be looking at what could play out to be a small bear flag pattern, waiting for another leg down to the 1.618 Fibonacci support at 7.2k
- The volume is extremely dry, and has not been able to support the past few breakouts with any significant momentum or strength
- The relative strength index (RSI) is also ranging between a descending channel, having reached its trend line resistance
- Though the MACD shows a golden cross, we can see that not only does the MACD also have a descending trend line resistance, but also the volume histogram is getting weaker, indicating a potentiality for a reversal
Market Sentiment:
Although the market is still split in half, with slightly more people bullish than bearish, we believe that it's too soon to confirm that the bottom is in. A test of the 1.618 Fibonacci support at 7.2k is definitely probable, and if that bearish scenario were to play out, we could potentially expect a small bullish breakout in price to occur, intentionally led by bears to provide liquidity in the market in order to fill their sell orders easily without major slippage.
What We Believe
We believe that the bottom for bitcoin may not be in just yet. Bitcoin would not only have to consolidate at 8k levels and hold, but also break 8.6k levels, and break out of the channel resistance in order to completely prove that a bullish rally is on its way.
Trade Safe.
Please make sure to follow and support us on twitter and telegram
We have been trading in a choppy sideways range for the past few weeks. Due to lack of volatility, we are seeing volume dry out, leading to no significant momentum and strength supports during small breakouts. We are currently trading within a descending channel, and we would like to take this opportunity to discuss the potential bullish and bearish scenarios we could see play out.
Bullish Scenario
- We have extremely strong historical support at 8k.
- This could potentially be a descending channel of a bigger bull flag that will play out
- We have seen a golden cross on the moving average convergence divergence indicator (MACD)
Bearish Scenario
- As we are technically trading within a range of a descending channel, we are technically still bearish.
- There is significant resistance at the 1.5 Fibonacci level, which we have only temporarily broken.
- We could be looking at what could play out to be a small bear flag pattern, waiting for another leg down to the 1.618 Fibonacci support at 7.2k
- The volume is extremely dry, and has not been able to support the past few breakouts with any significant momentum or strength
- The relative strength index (RSI) is also ranging between a descending channel, having reached its trend line resistance
- Though the MACD shows a golden cross, we can see that not only does the MACD also have a descending trend line resistance, but also the volume histogram is getting weaker, indicating a potentiality for a reversal
Market Sentiment:
Although the market is still split in half, with slightly more people bullish than bearish, we believe that it's too soon to confirm that the bottom is in. A test of the 1.618 Fibonacci support at 7.2k is definitely probable, and if that bearish scenario were to play out, we could potentially expect a small bullish breakout in price to occur, intentionally led by bears to provide liquidity in the market in order to fill their sell orders easily without major slippage.
What We Believe
We believe that the bottom for bitcoin may not be in just yet. Bitcoin would not only have to consolidate at 8k levels and hold, but also break 8.6k levels, and break out of the channel resistance in order to completely prove that a bullish rally is on its way.
Trade Safe.
Please make sure to follow and support us on twitter and telegram
🌎 Telegram | t.me/xforceglobal
📢 Twitter | twitter.com/XForceGlobal
🎥 YouTube | youtube.com/c/XForceGlobal
📢 Twitter | twitter.com/XForceGlobal
🎥 YouTube | youtube.com/c/XForceGlobal
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