$BTC - Bulls vs. Bears
Updated
Currently, Bitcoin is in a rather narrow range between $60,000 and $65,000, where bulls are defending their last support at $60,000 against the bears who have taken over the trend and set a lower high on the daily chart.
The last hope for the bulls is to attempt a bounce from the Fibonacci zone between 0.786 and 0.618, which has not yet been tested. If this zone is breached, the bulls will need to gather all their forces in a major buying frenzy at $60,000 to form a strong double bottom and push the price higher, in order to keep the trend bullish for the upcoming weeks. Failing to do so, bears will try to push the price down to $56,000-$57,000, where the support from the downward channel and the weekly EMA 20 are located, or even $53,000, where significant buying pressure might be waiting to change the trend. At this point, we still have no clear indication of what will happen next.
On the other side, the bears have several advantages. The price is currently below the 200 EMA on the 4-hour chart. The price approached the upper resistance of the downward channel and was heavily rejected at around $66,666 mark, printing a large red candle. After bouncing around $62,744, the price moved up to about $65,250 and reacted at the 0.618 Fibonacci level of a bearish pullback, setting this zone above as an area heavily guarded by bears.
Currently, the price seems to be reacting at the 0.618 Fibonacci level of the bullish pullback, with bulls likely placing a lot of orders between $60,000 and $62,400 trying to defend their zone.
Bulls must break the resistance of the downward channel at around $64,500. If bulls fail to break this resistance and the price gets rejected, there will be blood!
This is a NO TRADE ZONE for me, as I prefer to let the market decide and give a clear breakout so we can trade the pullback. Longing at 60k or shorting at the upper resistance of the downtrend channel would be something I might try, depending on the price action I see.
The last hope for the bulls is to attempt a bounce from the Fibonacci zone between 0.786 and 0.618, which has not yet been tested. If this zone is breached, the bulls will need to gather all their forces in a major buying frenzy at $60,000 to form a strong double bottom and push the price higher, in order to keep the trend bullish for the upcoming weeks. Failing to do so, bears will try to push the price down to $56,000-$57,000, where the support from the downward channel and the weekly EMA 20 are located, or even $53,000, where significant buying pressure might be waiting to change the trend. At this point, we still have no clear indication of what will happen next.
On the other side, the bears have several advantages. The price is currently below the 200 EMA on the 4-hour chart. The price approached the upper resistance of the downward channel and was heavily rejected at around $66,666 mark, printing a large red candle. After bouncing around $62,744, the price moved up to about $65,250 and reacted at the 0.618 Fibonacci level of a bearish pullback, setting this zone above as an area heavily guarded by bears.
Currently, the price seems to be reacting at the 0.618 Fibonacci level of the bullish pullback, with bulls likely placing a lot of orders between $60,000 and $62,400 trying to defend their zone.
Bulls must break the resistance of the downward channel at around $64,500. If bulls fail to break this resistance and the price gets rejected, there will be blood!
This is a NO TRADE ZONE for me, as I prefer to let the market decide and give a clear breakout so we can trade the pullback. Longing at 60k or shorting at the upper resistance of the downtrend channel would be something I might try, depending on the price action I see.
Note
UPDATE: The bulls impulse at 0.618 fibo didn't have much uptrend and pulled back to 0.709, from here the hope invaded bulls with a two huge green candles that made the price reach and touch the superior resistance of the bearish channel marked in the graph. From here bears took the lead again shooting the price violently back to the fibo zone of the bulls and down to 60700 and closing the sell close to the 0.786 zone. Currently the price is laying on there and probably looking for a (not so effective?) impulse upwards, OR downwards, where the last chance for bulls to keep price over 60k lies on.Note
Bulls lose! Price tried to consolidate at the 60k support, but coudn't stay too much and broke. Currently price lies at the 57k and it's printing a lower low. Bears take the led!
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