Hello traders,
Unfortunately, I won't be updating my analysis in next few weeks as I will be going for vacation. However, I would like to give you some of my mid-term analysis (2-4 weeks analysis)
Looking at the 4 hour chart, we see that Bitcoin potentially found support at the pink trendline after the breakout. However, the pull back is not convincing to me as Bitcoin is struggling to go above the blue trendline, which acted as the diagnoal support for 2 weeks. (volume is also lacking and I just don't feel any enthusiasms in the market) If Bitcoin can go above the blue trendline in next few hours/days, then 7.1K is on the table followed by 7.7K. Remember bulls goal in this rally is to get higher high instead of lower high. So, ultimately we want to go above 8.4K in order to have long term trend reversal.
If Bitcoin can't go back to the blue support line, I have to prepare for bear market scenario. You see, there may be a possibility of very large bear pennant is forming, and bearish breakout from blue trendline may entail the beginning of the bear market cycle. Additionally, there is a bearish crossover in Stoch RSI in daily chart, so I kind of have a feeling that this bull rally is starting to get exhausted.
So in summary, next few hours will be a critical point for mid-term Bitcoin trading plan, and It is not giving me a clear signal in the time of writing. But if you are asking my opinion, I am somewhat leaning towards bear side right now.
Happy trading!
Unfortunately, I won't be updating my analysis in next few weeks as I will be going for vacation. However, I would like to give you some of my mid-term analysis (2-4 weeks analysis)
Looking at the 4 hour chart, we see that Bitcoin potentially found support at the pink trendline after the breakout. However, the pull back is not convincing to me as Bitcoin is struggling to go above the blue trendline, which acted as the diagnoal support for 2 weeks. (volume is also lacking and I just don't feel any enthusiasms in the market) If Bitcoin can go above the blue trendline in next few hours/days, then 7.1K is on the table followed by 7.7K. Remember bulls goal in this rally is to get higher high instead of lower high. So, ultimately we want to go above 8.4K in order to have long term trend reversal.
If Bitcoin can't go back to the blue support line, I have to prepare for bear market scenario. You see, there may be a possibility of very large bear pennant is forming, and bearish breakout from blue trendline may entail the beginning of the bear market cycle. Additionally, there is a bearish crossover in Stoch RSI in daily chart, so I kind of have a feeling that this bull rally is starting to get exhausted.
So in summary, next few hours will be a critical point for mid-term Bitcoin trading plan, and It is not giving me a clear signal in the time of writing. But if you are asking my opinion, I am somewhat leaning towards bear side right now.
Happy trading!
Note
And there it is. Clear bear trend reversal. Although Bitcoin tried to get higher high in this rally, there was a huge resistance around 7.4K.
So here are the key levels that I am looking for:
1) 6.8K: this is the major support for Bitcoin at the moment, and I am hoping that we can attract some bulls in this level.
2) 6.5-6.6K region: If bitcoin can't find support at 6.8K region, Bitcoin will most likely test pink trendline as a support. If you recall my previous analysis, I was not convinced of the pink trendline breakout as it lacks an excitement and volume.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.