Bitcoin : Trending at support but Bear is lurking (hard)
Hello, welcome back again with my analysis of bitcoin. we've seen a very volatile days in the last 1 month, especially after the price touched the interim swing high and got rejected. However, this play is pretty healthy for bitcoin when the asset class like bitcoin touches the high volatility region like this. here it is my highly detailed analysis about bitcoin. Enjoy!
Looking at the chart presented, I have some confluence reasons that could play a significant role for bitcoin and the first thing highlighted is the white region where the price is trending right now. This is clearly a huge support zone for bitcoin, simply because this was a previous broken resistance that is now become support as well. And this drop could be the retest of the previous broke out action. But, the main question is will this support hold?
The 2nd thing that I want to highlight is the price action in the last 12 days, when the price has broken out of the previous resistance. After the price breached the previous resistance zone and touched the interim swing high, at least I find 2 bearish engulfing candle on the daily time frame and 1 price action that rejected from the green minor resistance zone. This kind of condition makes me assume that the stakeholders don't have the confidence of potential growth.
The 3rd think is that the price is still trending at the down trend parallel channel and with yesterday's bearish action, we can see that the daily candle has closed below the median line of the channel. This means that there is a huge possibility of the price to test the lower line of the channel which is around $9188 region. Breaking below this, will lead the price for further sell off to $8000 region.
Last thing that I want to highlight is the oscillator indicator on MACD and RSI. On the RSI, it is entering the neutral zone between 40 - 60 level, but the line is still curving down and this could continue its drop to neutral bearish zone. And worse for MACD, the histogram is ticking down to the downside and it's currently on the negative area which show us that the bears are in control.
I see a lot of confluence reasons for the price to print another lower low and lower high structure which is the indication of further sell off in the market. But, as long as current support is still holding, never use the significant amount of capital to enter the short. Laddering down the short position after it breaks current support zone is way wiser.
Looking at the chart presented, I have some confluence reasons that could play a significant role for bitcoin and the first thing highlighted is the white region where the price is trending right now. This is clearly a huge support zone for bitcoin, simply because this was a previous broken resistance that is now become support as well. And this drop could be the retest of the previous broke out action. But, the main question is will this support hold?
The 2nd thing that I want to highlight is the price action in the last 12 days, when the price has broken out of the previous resistance. After the price breached the previous resistance zone and touched the interim swing high, at least I find 2 bearish engulfing candle on the daily time frame and 1 price action that rejected from the green minor resistance zone. This kind of condition makes me assume that the stakeholders don't have the confidence of potential growth.
The 3rd think is that the price is still trending at the down trend parallel channel and with yesterday's bearish action, we can see that the daily candle has closed below the median line of the channel. This means that there is a huge possibility of the price to test the lower line of the channel which is around $9188 region. Breaking below this, will lead the price for further sell off to $8000 region.
Last thing that I want to highlight is the oscillator indicator on MACD and RSI. On the RSI, it is entering the neutral zone between 40 - 60 level, but the line is still curving down and this could continue its drop to neutral bearish zone. And worse for MACD, the histogram is ticking down to the downside and it's currently on the negative area which show us that the bears are in control.
I see a lot of confluence reasons for the price to print another lower low and lower high structure which is the indication of further sell off in the market. But, as long as current support is still holding, never use the significant amount of capital to enter the short. Laddering down the short position after it breaks current support zone is way wiser.
