China announced that they ban Bitcoin and crypto transactions. They do this every year and I bet someone is making a lot of money shorting the market before the announcement as insiders...
In any event, BTC and the overall market reacted on the news with a sharp -10% drop. However, that was just air until our support which at the time of this post has held well. We bounce of that level last time as well, so buyers were lucky to get another discount day.
Looking at the next few days, we can see a few paths.
1. Bitcoin pushes higher to test our key resistance level.
2. We get rejected at resistance and break our support.
For me the longer we stay in this area I become more bullish, particularly if this support at $40k continues to hold.
If you check the 4h timeframe indicators, you will see on RSI we're making higher lows (bullish) and on daily the MACD histogram paints a bullish divergence. These are good signs, but a break of resistance is needed to bring confidence in any up-trend. Got to be patient for that and China should learn to stop manipulating markets.
For now at least a bounce is in order towards $43k.
Like and follow if you liked this idea.
In any event, BTC and the overall market reacted on the news with a sharp -10% drop. However, that was just air until our support which at the time of this post has held well. We bounce of that level last time as well, so buyers were lucky to get another discount day.
Looking at the next few days, we can see a few paths.
1. Bitcoin pushes higher to test our key resistance level.
2. We get rejected at resistance and break our support.
For me the longer we stay in this area I become more bullish, particularly if this support at $40k continues to hold.
If you check the 4h timeframe indicators, you will see on RSI we're making higher lows (bullish) and on daily the MACD histogram paints a bullish divergence. These are good signs, but a break of resistance is needed to bring confidence in any up-trend. Got to be patient for that and China should learn to stop manipulating markets.
For now at least a bounce is in order towards $43k.
Like and follow if you liked this idea.
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