Mixed Signals in Bitcoin, as Bulls & Bears Fight For The Trend
Looking at the weekly Bitcoin chart, we can see that price held support on the 50 week MA (pink circle.) What's interesting about this, is that the only two other times where Bitcoin held support on the 50 week MA, it eventually failed, fell back below it, and dropped to the 200 week MA (in purple.) Now, that isn't an extremely strong indication that the same thing is going to happen again, but it is interesting.
The other interesting thing to note is that BTC has not yet reached a major higher high on the daily chart. In fact, the last major high was printed in October, and it was at about 10550. BTC appears to be trying to form a top, and if that is the case, it will have simply formed a lower high, which would mean that the downtrend is still intact.
However, there are some bullish signals that shouldn't be ignored. One notable bullish signal is on the RIS. We can see that Bitcoin has broken out above the 55 level here. Historically, when BTC has broken above the 55 level on the weekly RSI, and held above it, that has correlated to a bull market. So, that suggests we are in the early stages of a new bull market, but I'm not convinced. A new high and a breakout above the falling black trendline would probably change my mind. Until then, I'm neutral to bearish on Bitcoin.
A failure to hold support on the 50 week would be a sign that BTC is preparing to fall to the 200 week, which is currently around 5400. The 50 week is currently at 8400. With Bitcoin currently at 9600, it wouldn't take much for a retest of the 50 week, which has happened after each major hold of it in the history of Bitcoin.
Also, volume is weak AF right now. As I've said many times, rising price and falling volume is bearish. That has been happening since 2015.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
The other interesting thing to note is that BTC has not yet reached a major higher high on the daily chart. In fact, the last major high was printed in October, and it was at about 10550. BTC appears to be trying to form a top, and if that is the case, it will have simply formed a lower high, which would mean that the downtrend is still intact.
However, there are some bullish signals that shouldn't be ignored. One notable bullish signal is on the RIS. We can see that Bitcoin has broken out above the 55 level here. Historically, when BTC has broken above the 55 level on the weekly RSI, and held above it, that has correlated to a bull market. So, that suggests we are in the early stages of a new bull market, but I'm not convinced. A new high and a breakout above the falling black trendline would probably change my mind. Until then, I'm neutral to bearish on Bitcoin.
A failure to hold support on the 50 week would be a sign that BTC is preparing to fall to the 200 week, which is currently around 5400. The 50 week is currently at 8400. With Bitcoin currently at 9600, it wouldn't take much for a retest of the 50 week, which has happened after each major hold of it in the history of Bitcoin.
Also, volume is weak AF right now. As I've said many times, rising price and falling volume is bearish. That has been happening since 2015.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-