Bitcoin still weak
Updated
We have dropped enough to look for a bounce, but the conditions aren't good enough for me. We are oversold from the 1 hr to the 4 hr RSI, but the 12 hr and daily aren't near oversold on the RSI. We had the 28 day, 50 day and 200 day moving averages cross on the 1 hr, which is looking pretty bearish. We'd be better off if we bounced off the white trend line around 7100, but there is also the risk of breaking lower too. We are seeing a bit of buying, but there are no sequential setups on the Tom Demark indicator. Buying because the 4 hr got oversold is not a good enough reason for me. It could grind back up to 7700, but that's still not good enough either. Chaikin Money Flow is below zero all the way to the daily chart. Volume is also weak. Unless we dip down to 7100, I will definitely sit this bounce out.
Comment
I should also add that 7100 isn't a guarantee that I buy either. My alerts are set and I will reassess the charts again.Comment
We broke down from 7100. I was watching the RSI closely. |In my opinion, we needed the RSI to at least touch the oversold on the 12hr and daily at the same time we hit the white trend line for it to even start being a favorable bounce. The volume accumulation wasn't enough during this time to sway my opinion either. Like I said before, oversold on the 4hr is only one reason to buy in against many bearish postures. As I watched bitcoin try to hold and then bounce from 7100, it just looked too weak and I didn't buy. I am not sure what the next downside target is. The white trend line will now be heavy resistance.Disclaimer
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