Technical analysis update: BTCUSD (4th December 2021)
Updated
Recently, we correctly predicted the double top formation in its early stage while noting that Bitcoin was near its cyclical peak. Additionally, yesterday we warned investors about the imminent retest of a key technical level around 53 000 USD. Then overnight BTCUSD fell over 20% to as low as 41 967 USD. Since then the price retraced back to 47 800 USD. We continue to maintain a bearish stance on Bitcoin as we expect selling pressure to be persistent. However, it would not surprise us to see price retracement continue a little higher (and possibly above 50 000 USD) before falling again. Technical and fundamental analysis supports our bearish view. Crucial technical levels to watch are 48 834 USD, 42 900 USD and 39 573 USD. In the following weeks we will observe whether BTCUSD will manage to break below 39 573 USD and indicate continuation of the bearish trend.
Our bold predictions from recent past:
We warned about double top formation already on 16th November 2021.
Technical analysis - daily time frame
RSI continues to develop bearish structure and it is due to perform crossover into the bearish zone. We expect such an occurrence to be accompanied by heavy selling pressure. MACD and Stochastic are also bearish. Additionally, DM+ and DM- are bearish too. ADX suggests that the bearish trend keeps strengthening. Overall, technical analysis on the daily time frame is very bearish and supports our bearish stance.
Technical analysis - weekly time frame
RSI, MACD and Stochastic are all bearish. DM+ and DM- show the same conditions as they performed bearish crossover recently. ADX remains low.
Support and resistance
Major resistance remains at 69 000 USD. Major support level is at 28 600 USD. Short-term resistance is at 48 834 USD, then Resistance 1 is at 52 956 USD. Resistance 2 is at 59 564 USD. Resistance 3 is then at 64 895 USD. Support 1 is at 42 900 USD and Support 2 is at 39 573 USD.
Our recent popular idea from 16th November 2021:
Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
Our bold predictions from recent past:
We warned about double top formation already on 16th November 2021.
Technical analysis - daily time frame
RSI continues to develop bearish structure and it is due to perform crossover into the bearish zone. We expect such an occurrence to be accompanied by heavy selling pressure. MACD and Stochastic are also bearish. Additionally, DM+ and DM- are bearish too. ADX suggests that the bearish trend keeps strengthening. Overall, technical analysis on the daily time frame is very bearish and supports our bearish stance.
Technical analysis - weekly time frame
RSI, MACD and Stochastic are all bearish. DM+ and DM- show the same conditions as they performed bearish crossover recently. ADX remains low.
Support and resistance
Major resistance remains at 69 000 USD. Major support level is at 28 600 USD. Short-term resistance is at 48 834 USD, then Resistance 1 is at 52 956 USD. Resistance 2 is at 59 564 USD. Resistance 3 is then at 64 895 USD. Support 1 is at 42 900 USD and Support 2 is at 39 573 USD.
Our recent popular idea from 16th November 2021:
Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
Trade active
BTCUSD broke above 50 000 USD. We will observe it closely and we will watch whether it will gather strength to break above Resistance 1. Such phenomenon could possibly be bullish catalyst for price, however, it also could be fake breakout. Because of that we think investors should be very cautious.
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