Good morning hodlers and traders... Today I have the 1 day chart pulled up after dropping a bit after the weekly close yesterday. I have seen lately that the moves are seemingly occurring after the weekly closes. This wont always be the case but it is this past week. I have been waiting for a drop for over a week. Really just anticipated that one was coming and if finally materialized yesterday evening. We are still above 9k though after plunging to 8900 yesterday. Can the bulls reverse this dump? Lets take a look at the chart.
First thing I want to point out is the fact that we are currently below the daily 50 MA for the first time since mid April. Being below the 50 MA is considered bearish. Especially after being above it for 2 months. The 50 MA is just the first hurdle for the bears though. The daily time frame still has plenty of support below us but is it enough to instill confidence in an already shaky market? I dont think so... At least not at this time.
There is a noticeable golden cross still on the chart but it has proven to be lacking like the previous one. Not all golden crosses are created equal. The golden cross you see on this chart (when the 50 MA is above the 200 MA) will likely reverse unless the bulls really rally today. This seems unlikely to me. Those who are still long are going to wake up this morning (Western Hemisphere) and they will most likely reconsider their positions. After waking up to see us on shaky ground but still above 9k could cause these weak hands to drop their bag and wait for a better buy in after the downtrend ends. Of course only time will tell.
Im happy I decided to sit this drop out (In USDT) and I am awaiting a good buy in to try and accumulate more Bitcoin. The red candles are just as big of an opportunity if you know what you are doing... Go into stable coin, wait for the drop to subside, reenter a position when you are comfortable enough to do so. This is how one can increase their BTC holdings without necessarily having to log into Coinbase or whatever and buying some with you checking account. I prefer the trading method as it is ultimately free if you play the chart the right way.
The daily cloud has been out of the picture for nearly 2 months. Today it acted as support which is significant as the daily cloud is now a part of the equation. So our plunge into that daily cloud saw us dip to 8900 before recovering slightly to 9100 where we are sitting currently. We may see more recovery as the markets contemplate their next move. But I cant see us getting back above the daily 50 MA unless the bulls absolutely rally and they need to do it fast. Fomo wont wait. RSI is low on the chart which is a good sign. But RSI only takes you so far. Ive seen the candles totally disregard the RSI many times so dont put all your eggs into one indicator.
All in all we should have seen this coming. We made it to 10400 USD a while back which is the high point for the recent uptrend. We were very close in my opinion to breaking 10500 which was needed to create that higher high traders want to see. There were a lot of reasons for us not making it that high but the main one I noticed is the descending resistance that has been plaguing the charts since Bitcoins ATH 2.5 years ago. Right now breaking 10k again pretty much means breaking this stiff resistance and we may need another down trend before we have the fuel to break up through this resistance. If and when we do break it I imagine fomo will likely ensue and we may even fill the gap way up at 11800. Speaking of gaps I dont see anything worth mentioning as far as a gap from this previous weekend on the CME. 9100ish has been a good area for support since last year and it is holding up now as well. I will be watching close today. Trade at your own risk folks. But WTFDIK right?????
TLDR: I threw a fan on the chart. First time I used it in ages. Things look dumpy folks. Looks like a down trend is forming so proceed with caution.
First thing I want to point out is the fact that we are currently below the daily 50 MA for the first time since mid April. Being below the 50 MA is considered bearish. Especially after being above it for 2 months. The 50 MA is just the first hurdle for the bears though. The daily time frame still has plenty of support below us but is it enough to instill confidence in an already shaky market? I dont think so... At least not at this time.
There is a noticeable golden cross still on the chart but it has proven to be lacking like the previous one. Not all golden crosses are created equal. The golden cross you see on this chart (when the 50 MA is above the 200 MA) will likely reverse unless the bulls really rally today. This seems unlikely to me. Those who are still long are going to wake up this morning (Western Hemisphere) and they will most likely reconsider their positions. After waking up to see us on shaky ground but still above 9k could cause these weak hands to drop their bag and wait for a better buy in after the downtrend ends. Of course only time will tell.
Im happy I decided to sit this drop out (In USDT) and I am awaiting a good buy in to try and accumulate more Bitcoin. The red candles are just as big of an opportunity if you know what you are doing... Go into stable coin, wait for the drop to subside, reenter a position when you are comfortable enough to do so. This is how one can increase their BTC holdings without necessarily having to log into Coinbase or whatever and buying some with you checking account. I prefer the trading method as it is ultimately free if you play the chart the right way.
The daily cloud has been out of the picture for nearly 2 months. Today it acted as support which is significant as the daily cloud is now a part of the equation. So our plunge into that daily cloud saw us dip to 8900 before recovering slightly to 9100 where we are sitting currently. We may see more recovery as the markets contemplate their next move. But I cant see us getting back above the daily 50 MA unless the bulls absolutely rally and they need to do it fast. Fomo wont wait. RSI is low on the chart which is a good sign. But RSI only takes you so far. Ive seen the candles totally disregard the RSI many times so dont put all your eggs into one indicator.
All in all we should have seen this coming. We made it to 10400 USD a while back which is the high point for the recent uptrend. We were very close in my opinion to breaking 10500 which was needed to create that higher high traders want to see. There were a lot of reasons for us not making it that high but the main one I noticed is the descending resistance that has been plaguing the charts since Bitcoins ATH 2.5 years ago. Right now breaking 10k again pretty much means breaking this stiff resistance and we may need another down trend before we have the fuel to break up through this resistance. If and when we do break it I imagine fomo will likely ensue and we may even fill the gap way up at 11800. Speaking of gaps I dont see anything worth mentioning as far as a gap from this previous weekend on the CME. 9100ish has been a good area for support since last year and it is holding up now as well. I will be watching close today. Trade at your own risk folks. But WTFDIK right?????
TLDR: I threw a fan on the chart. First time I used it in ages. Things look dumpy folks. Looks like a down trend is forming so proceed with caution.
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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.