Hello all trader, how are you doing today? I hope you're all doing great. Here we come again with the monthly chart of bitcoin which is however a little bit nastier than I thought earlier. With a different method of technical analysis, this will give us a refreshing view of what's happening in the market for now.
Looking at the monthly chart, I found that the bear is taking control of current market for now. There are some indications that could support my view on this current condition.
1. Histogram on the monthly chart is showing us a ticking down to the negative side which usually will lead the price to further touch down to the next support area.
2. Death cross has already occured on the moving average of the MACD. This shows us that the momentum of the bulls is slowly diminishing, and the shifting from bullish to bearish is happening right now.
3. The confluence zone however always be my part of analysis which usually can give me a clearer view of what could happen in the near future. I'm using the body to body connecting method to connect the 2 swing point for fibonacci retracement and I found a lot of things are getting interesting here. I found that the golden pocket zone is locating align with the previous resistance region for bitcoin. And what's more important is, since the initial break out of this resistance region, I can't find a phase 2 of break out strategy which is retesting the previous broken resistance as a support for now. And considering that this white zone is the broken resistance turn support, I am pretty sure that this zone will become a key support level that will act as a magnet for current bitcoin's move.
For medium term, there is still a potential down trend toward the 78.6 fibonacci level or even lower. And the end of 2019 will become very nasty. But, for short term, I'm still unbiased and as long as the price can't break the lower support aroung $6500 region, my previous analysis which refer to the potential wave 3 will always be valid.
Looking at the monthly chart, I found that the bear is taking control of current market for now. There are some indications that could support my view on this current condition.
1. Histogram on the monthly chart is showing us a ticking down to the negative side which usually will lead the price to further touch down to the next support area.
2. Death cross has already occured on the moving average of the MACD. This shows us that the momentum of the bulls is slowly diminishing, and the shifting from bullish to bearish is happening right now.
3. The confluence zone however always be my part of analysis which usually can give me a clearer view of what could happen in the near future. I'm using the body to body connecting method to connect the 2 swing point for fibonacci retracement and I found a lot of things are getting interesting here. I found that the golden pocket zone is locating align with the previous resistance region for bitcoin. And what's more important is, since the initial break out of this resistance region, I can't find a phase 2 of break out strategy which is retesting the previous broken resistance as a support for now. And considering that this white zone is the broken resistance turn support, I am pretty sure that this zone will become a key support level that will act as a magnet for current bitcoin's move.
For medium term, there is still a potential down trend toward the 78.6 fibonacci level or even lower. And the end of 2019 will become very nasty. But, for short term, I'm still unbiased and as long as the price can't break the lower support aroung $6500 region, my previous analysis which refer to the potential wave 3 will always be valid.
