The trend of a lower degree turns neutral again

Bitcoin continues to hover within the downward-sloping channel, and the trend of a lower degree remains neutral, as implied by the low value of the daily ADX and choppy price action. With these developments in place, the focus lies on support at $60,760 and $60,000; a breakout below these two levels will bolster a bearish case in the short term, especially a breakout below the latter. This case would also be strengthened by declining RSI and Stochastic on the daily graph, along with MACD’s failure to move into the bullish area above the midpoint. Contrarily, a bullish case would be strengthened by the rise in all mentioned indicators simultaneously, along with a breakout above the 20-day SMA and later the 50-day SMA.

Illustration 1.01

The yellow arrow indicates a temporary fakeout above the important trendline; if Bitcoin breaks above it and manages to stay there, it will be positive for the cryptocurrency in the short term.

Illustration 1.02

The image above shows simple support and resistance levels derived from peaks and troughs.

Bitcoin addresses
There have not been any notable changes to the number of Bitcoin addresses with balances exceeding 1,000 BTC; the same applies to the addresses with holdings exceeding 100 BTC.

Technical conditions
Daily time frame = Neutral
Weekly time frame = Neutral
Monthly time frame = Bullish

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.

Comment:

Illustration 1.03

A pattern resembling an inversed head and shoulder is forming on the 3-hour chart of BTCUSD, potentially raising the chances for a small price surge if the neckline is broken to the upside.

Comment:

Bitcoin broke through the neckline; the major resistance levels to watch out for are $65,513 and $67,241.