Fundamentally, we haven’t changed much, with all that protesting and riots that are going down in the US, the markets are still looking pretty good. The BTC difficulty is settled at around -9% - which is weird as the BTC price is still holding above 9500. We are in a situation where and fundamentals are not in sync with one another. It’s best to focus more on the charts during this time of crisis and chaos.So let’s jump straight into .
Starting off with the weekly time-frame (left), you can tell that this week’s candle resulted with a huge manipulative spike to the 10500, and immediately reversed back down. This kind of movement validates few things, the first one being that we are still in a bear trend, and we won’t be able to push higher unless the previous Lower-High located exactly at this level is taken out.This weeks’ reversal from 10,500 back to sub 9500, showed the importance of the 9500/10,500 liquidity area that we’ve been covering for weeks now.This is the region where the majority of institutions, whales, market manipulators have placed their sell orders, which is why by the time BTC reached 10,500 it immediately triggered a reversal.
The chart structure shows that BTC has been making a series of lower highs and lower lows. Last lower low is at around $4000, after that BTC headed towards $10,500 to break the trend and continue moving higher, but it failed to do so. This resulted with a formation of an Equal Lower High or , which is a signal.
The descending trend-line is just an added confluence to the things that I mentioned above.
These are the key levels that we’ll be looking out on the weekly time-frame, should we fail again to break above these levels, BTC will be headed towards $8000 weekly support.
On the daily time-frame we also have an interesting situation. We’ve been in an upside rally since March 13. BTC has been climbing from $4000 all the way up to 10,500. Now, as you can see on the charts this rally looks exhausted, the price has not much more room to move as the distance between the ascending daily trend-line and the 10,500 weekly resistance is closing.
By the start of next week, we should be seeing a breakout from this pattern, a break of the trend-line would take us towards $8800 daily support