When would $BTC turn bullish?
Key levels
Short term
Supports—> S1: 7,300 & S2: 6,800
Resistances—> R1: 7,750 & R2: 8,100
Medium term
Supports—> S3: 6,600 & S4: 6,400
Resistances—> R3: 8,800 & R4: 9,400
Potential scenario
Two days ago, Bitcoin made a very sharp move from $8,300 to $7,400. Almost $1,000 in barely 12 hours. Bitcoin has been continuously making lower maximums since it reached $13,800 back in June. This suggests that the scenario remains very bearish for the most capitalised cryptocurrency.
In order to turn more bullish, Bitcoin needs to break R3, and R4 for better confirmation. Currently, the most important resistances are R3 and R4. If the price remains below those levels, we can expect further falls.
TA comment
In order to pinpoint a potential bullish rally that would break the key levels R3 and R4, a long-term moving average, Weighted Moving Average (WMA) in this case, would give buy signals only once the price has increased significantly. Then, getting closer to R3 and R4
In order to filter potential fake signals or breakouts, the user can add another technical indicator to improve the likelihood to get a positive trade.
Pattern
During the 7% drop that took place two days ago, the system spotted some bearish patterns. One that is very clearly represented in the chart is the Closing Marubozu Bearish. It is a bearish pattern and represents by one candle, and signals a sell signal. This one has a long body and short, or no, wick with a downward movement.
Short term
Supports—> S1: 7,300 & S2: 6,800
Resistances—> R1: 7,750 & R2: 8,100
Medium term
Supports—> S3: 6,600 & S4: 6,400
Resistances—> R3: 8,800 & R4: 9,400
Potential scenario
Two days ago, Bitcoin made a very sharp move from $8,300 to $7,400. Almost $1,000 in barely 12 hours. Bitcoin has been continuously making lower maximums since it reached $13,800 back in June. This suggests that the scenario remains very bearish for the most capitalised cryptocurrency.
In order to turn more bullish, Bitcoin needs to break R3, and R4 for better confirmation. Currently, the most important resistances are R3 and R4. If the price remains below those levels, we can expect further falls.
TA comment
In order to pinpoint a potential bullish rally that would break the key levels R3 and R4, a long-term moving average, Weighted Moving Average (WMA) in this case, would give buy signals only once the price has increased significantly. Then, getting closer to R3 and R4
In order to filter potential fake signals or breakouts, the user can add another technical indicator to improve the likelihood to get a positive trade.
Pattern
During the 7% drop that took place two days ago, the system spotted some bearish patterns. One that is very clearly represented in the chart is the Closing Marubozu Bearish. It is a bearish pattern and represents by one candle, and signals a sell signal. This one has a long body and short, or no, wick with a downward movement.
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