Bearish Case for Bitcoin (20WMA rejected)
Notice how 20 WMA provided inpenetrable support during the 2017 bull market all the way from $600 to the top. Each time Bitcoin tested it, it bounced back. During the 2018 bear market 20 WMA provided strong resistance.
This year in March 20 WMA crossed bullish, but in September crossed bearish again. In October we retested it but got rejected, and price is rapidly approaching previous support levels.
Pattern wise, we could be looking at massive Head and Shoulders with approximate minimum target of $1494.
Bitcoin's inability to stay above 20WMA like in 2017 is concerning. I would advise to exercise caution and not go long until we see a daily close above 20 WMA.
Shorting is unadvisable too, at least until the pattern confirms (neckline break at big volume).
Now is the time to stay in cash and watch on the sidelines, in my opinion.
This year in March 20 WMA crossed bullish, but in September crossed bearish again. In October we retested it but got rejected, and price is rapidly approaching previous support levels.
Pattern wise, we could be looking at massive Head and Shoulders with approximate minimum target of $1494.
Bitcoin's inability to stay above 20WMA like in 2017 is concerning. I would advise to exercise caution and not go long until we see a daily close above 20 WMA.
Shorting is unadvisable too, at least until the pattern confirms (neckline break at big volume).
Now is the time to stay in cash and watch on the sidelines, in my opinion.
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