BTCUSD closed the 12H right on the 21 EMA (yellow line) and now got rejected by it. That puts us back under most major moving averages. The failure to come close, let alone break significant resistance around 9500, makes great bullish action in the immediate future unlikely. So, it might not be the worst place to join Team Bear. Entered at 8800, looking to take profit around 8200. S/L above the 21 EMA.
Comment:
Zooming out to larger time frames provides more evidence for the bearish case; on the daily BTCUSD is falling away from the 200 SMA. Only the 200 EMA at 8700 is still providing support on the daily chart. On the 3-day, we had an open and close below the 21 EMA as well as a fresh Stochastic cross to the downside, completely invalidating our previous bullish idea. The weekly also is dropping away from the 21 EMA, and when we zoom out all the way to the monthly, we see lower highs and lower lows for the past three months. BTCUSD can do some more ranging between here and 9100, but after the break of 8800 resistance, the next stop is most likely 8200.
Comment:
Everything is going according to plan. BTCUSD is at daily support now (8550). A bounce of this area is not unlikely. So this might be a decent place to lock in some early profit.
