Bitcoin: FAKE Reversal???
Updated
Daily chart: the market is overbought. Such pumps have to corrected. The wicks of daily candles and a false breakout above the local resistance give us a strong BEARISH signal. We have more than enough reasons to be in the bearish team and wait for the downward movement toward $20 000.
BUT!!! We have to consider 2 important things right now:
AFTER the false breakout and the bearish sentiment the market didn't move downward. Why??? It means there are no strong bears = it's a bullish signal.
The daily candle is going to be closed ABOVE the local resistance = it's a bullish signal.
So, in spite of the logical downward movement and bearish signals supported this direction, I think the market will move upward. The most logical target for bulls is the $25 000 resistance.
It creates a trade opportunity for buying.
Just to be sure in the bullish model, we have to wait for the close price of the daily candle. If it's above the resistance, the bullish model will be in play.
If the price is below the resistance, we will stay in consolidation and wait for more signals.
What do you think?
BUT!!! We have to consider 2 important things right now:
AFTER the false breakout and the bearish sentiment the market didn't move downward. Why??? It means there are no strong bears = it's a bullish signal.
The daily candle is going to be closed ABOVE the local resistance = it's a bullish signal.
So, in spite of the logical downward movement and bearish signals supported this direction, I think the market will move upward. The most logical target for bulls is the $25 000 resistance.
It creates a trade opportunity for buying.
Just to be sure in the bullish model, we have to wait for the close price of the daily candle. If it's above the resistance, the bullish model will be in play.
If the price is below the resistance, we will stay in consolidation and wait for more signals.
What do you think?
Note
It was a fake upward movement. We may say it but it will be better to wait for the close price of the daily candle. Also, we have to watch for the price action around the $22 527 support level. If the price stays above, we will see the continuation of the range.
If the price moves below the support, it will be a bearish signal with the logical target around $20 000.
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