Good morning everyone and welcome to my daily analysis of Bitcoin. I have the daily pulled up after a pretty flat night. We did dip to sub 9200 briefly only to recover to nearly 9300 once again. We are still inching our way down folks. Slowly but surely. I have noticed that lately after the weekly close I have been seeing some action. I am going to keep my eye on the weekly close once again this week. There is no general consensus on which way the candles are going but if you ask me we are due for a drop. Of course Bitcoin has a habit of surprising us all so just be prepared for anything folks. Lets take a look at the situation on the chart.
First thing I want to point out is we closed below the daily 50 MA. We have managed to keep our heads above the 50 MA for nearly a week but we finally sank below the daily 50 MA. This is the first step towards a down trend. Unless we can retake the daily 50 MA we will likely sink into that daily cloud. There is some support at 8800 (.236 fib) and then below that I can see the bottom border of the cloud merges with the daily 200 MA. This cluster of support will likely ensure a bounce here at the very least I would imagine. The descending resistance I drew is only 2 points at this time but if the candles approach it and go down the resistance will be more acceptable.
Meanwhile on the other significant time frames the 4hr 50 MA is still directly above our heads. We have been fighting to get back above the 4hr 50 MA to no avail. So we are walking down the chart hand in hand with that 4hr 50 MA at this time. Right now we are below the 4hr 50 MA and the 4hr 200 MA and the 4hr cloud. All of this is bearish. I would love to see the bulls surprise us all but Im not really holding my breath at this time.
The last real hope for the bulls lies at the top of the weekly cloud. We are barely keeping our heads above the cloud and could drop any second from the looks of it. The cloud drops significantly after this weekly close. So if the weekly cloud continues to be support for the candles we will likely drop to an even 9k next week. There is no guarantee that we stay above the weekly cloud but I guess more wishful thinking. The weekly cloud gets pretty thin in the next few weeks which should make it more susceptible for the candles to possibly drop through the thin area of the cloud. Last time we broke through the cloud was in a thin area like this back in Dec of 2019. I have noticed that the candles will break through these thin areas in the cloud and I would keep my eye on it if nothing else. Just in case.
Im still bearish if you all cant tell. I saw a sentiment poll and it was mixed but I think the bears were ahead in the voting. I think if we lose 9k that will be a blow to the bulls and may cause some fomo selling. Either way I would be hesitant to go long here. If you do set a good stop loss and stick to it. The writing is on the wall from the looks of it. If the bulls want to reverse this they need to do it quick. The more support we lose the more traders lose confidence in the market and a downtrend is the next step. The market is cyclical so what goes up typically comes down. I hope you all have a good weekend. WTFDIK!
TLDR: Hal Finney is the man!
First thing I want to point out is we closed below the daily 50 MA. We have managed to keep our heads above the 50 MA for nearly a week but we finally sank below the daily 50 MA. This is the first step towards a down trend. Unless we can retake the daily 50 MA we will likely sink into that daily cloud. There is some support at 8800 (.236 fib) and then below that I can see the bottom border of the cloud merges with the daily 200 MA. This cluster of support will likely ensure a bounce here at the very least I would imagine. The descending resistance I drew is only 2 points at this time but if the candles approach it and go down the resistance will be more acceptable.
Meanwhile on the other significant time frames the 4hr 50 MA is still directly above our heads. We have been fighting to get back above the 4hr 50 MA to no avail. So we are walking down the chart hand in hand with that 4hr 50 MA at this time. Right now we are below the 4hr 50 MA and the 4hr 200 MA and the 4hr cloud. All of this is bearish. I would love to see the bulls surprise us all but Im not really holding my breath at this time.
The last real hope for the bulls lies at the top of the weekly cloud. We are barely keeping our heads above the cloud and could drop any second from the looks of it. The cloud drops significantly after this weekly close. So if the weekly cloud continues to be support for the candles we will likely drop to an even 9k next week. There is no guarantee that we stay above the weekly cloud but I guess more wishful thinking. The weekly cloud gets pretty thin in the next few weeks which should make it more susceptible for the candles to possibly drop through the thin area of the cloud. Last time we broke through the cloud was in a thin area like this back in Dec of 2019. I have noticed that the candles will break through these thin areas in the cloud and I would keep my eye on it if nothing else. Just in case.
Im still bearish if you all cant tell. I saw a sentiment poll and it was mixed but I think the bears were ahead in the voting. I think if we lose 9k that will be a blow to the bulls and may cause some fomo selling. Either way I would be hesitant to go long here. If you do set a good stop loss and stick to it. The writing is on the wall from the looks of it. If the bulls want to reverse this they need to do it quick. The more support we lose the more traders lose confidence in the market and a downtrend is the next step. The market is cyclical so what goes up typically comes down. I hope you all have a good weekend. WTFDIK!
TLDR: Hal Finney is the man!
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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.