BTC/USD 6hour Chart Analysis
Updated
I'm seeing many bearish signals.
First, there was a bearish divergence in the stochastic oscillator(yellow line).
When it is hard to tell which side is higher or lower in the oscillator, we can compare the length of time the oscillator stayed in the overbought region.
Clearly, we can see that the oscillator stayed in overbought for a longer time on the left side than on the right side of the yellow line.
Price dropped hard after this bearish divergence, but recovered with a big green candle.
However, the green candle didn't bring enough volume to confirm the bullish momentum.
I believe the bearish momentum from this divergence is not over yet.
Bulls have tried to breach the rectangle and continue the run but it seems momentum is too weak to do so.
I belive price will fall once more.
Target is $7500.
It is the middle of the big green candle which continued the bull run(marked by the green arrow).
Bear run will end when it hits the 120MA.
First, there was a bearish divergence in the stochastic oscillator(yellow line).
When it is hard to tell which side is higher or lower in the oscillator, we can compare the length of time the oscillator stayed in the overbought region.
Clearly, we can see that the oscillator stayed in overbought for a longer time on the left side than on the right side of the yellow line.
Price dropped hard after this bearish divergence, but recovered with a big green candle.
However, the green candle didn't bring enough volume to confirm the bullish momentum.
I believe the bearish momentum from this divergence is not over yet.
Bulls have tried to breach the rectangle and continue the run but it seems momentum is too weak to do so.
I belive price will fall once more.
Target is $7500.
It is the middle of the big green candle which continued the bull run(marked by the green arrow).
Bear run will end when it hits the 120MA.
Note
I still think this is a viable scenario, but bear momentum is weaker than expected.For now, I would say the direction is undecided.
Bulls and bears are fighting.
A small move above or below the box will be the trigger for a bigger trend.
Let us patiently wait.
Trade active
I hope all of you that have followed my advice has made big profits.
Currently, we've found support at this level.
However, there's still a possibility to break lower low.
If you have entered a short position before it broke out of the rectangle, you can wait for a lower low.
Trade active
We may see a lower low but it won't go too far down.
I believe we'll stay within this rectangle before price decides where to go.
Trade closed: target reached
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