BTCUSD - Analysis of 26.04.2020
This weekend we have seen a compression of volatility that has kept prices almost stable.
In these hours, just before the opening of the Asian markets, from which we expect volatility to increase, prices are starting to move, heading towards the highs reached last Thursday, trying to exceed them.
We expect that in the next few hours a continuation of the race towards the much-coveted target of 8k, psychological resistance that has been a key point since 2018, but first we may find an obstacle at 7900, which is the EMA200 on TF:1D and the EMA50 on TF:1W.
After the latter the target is 8200/8400.
The imminent halving seems to be making bitcoin appreciate, and the exponential moving averages that are tilting upwards, in particular the EMA20 and EMA50 are in golden formation.
On the other hand, one should not get caught up in euphoria and take it for granted that halving will lead to an immediate increase in prices, because the global situation on the financial markets is different this year.
So much so that in the two previous halving years the global economy and in particular the stock market was on the rise, while this year we are in full recession because of the Covid-19.
In the short term, we expect strong liquidations within the above target, which will lead to an inevitable price collapse.
If the latter will be with a fairly high momentum and buyers will not be able to maintain the level of support in area 7,400 the bullish vision would be invalidated and many investors will withdraw from the market, causing a further major meltdown with an initial support in area 6,700, but with a possible maximum extension up to 6,000.
Operational ideas:
I see it's risky to enter long now, so let's wait until we reach the resistance level mentioned above and at the first sign of reversal we could enter short with short SL.
The Stoch RSI indicator is in death formation in overbought area, we wait for a price outflow from the upper band of BB with confirmation candle following bear to enter short.
In these hours, just before the opening of the Asian markets, from which we expect volatility to increase, prices are starting to move, heading towards the highs reached last Thursday, trying to exceed them.
We expect that in the next few hours a continuation of the race towards the much-coveted target of 8k, psychological resistance that has been a key point since 2018, but first we may find an obstacle at 7900, which is the EMA200 on TF:1D and the EMA50 on TF:1W.
After the latter the target is 8200/8400.
The imminent halving seems to be making bitcoin appreciate, and the exponential moving averages that are tilting upwards, in particular the EMA20 and EMA50 are in golden formation.
On the other hand, one should not get caught up in euphoria and take it for granted that halving will lead to an immediate increase in prices, because the global situation on the financial markets is different this year.
So much so that in the two previous halving years the global economy and in particular the stock market was on the rise, while this year we are in full recession because of the Covid-19.
In the short term, we expect strong liquidations within the above target, which will lead to an inevitable price collapse.
If the latter will be with a fairly high momentum and buyers will not be able to maintain the level of support in area 7,400 the bullish vision would be invalidated and many investors will withdraw from the market, causing a further major meltdown with an initial support in area 6,700, but with a possible maximum extension up to 6,000.
Operational ideas:
I see it's risky to enter long now, so let's wait until we reach the resistance level mentioned above and at the first sign of reversal we could enter short with short SL.
The Stoch RSI indicator is in death formation in overbought area, we wait for a price outflow from the upper band of BB with confirmation candle following bear to enter short.
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