Bitcoin (BTC) on the daily chart is showing strong signs of an oversold market and is currently sitting on a key support level at $40k. If the $40k level fails to hold as support BTC is on its way back down to retest the 23.60% at $37,623 which is currently -7% from the current price level. This current downward trend we are experiencing may lead to another consolidation period similar to that after the May crash where we saw BTC struggling to get past the 23.60% fibs 3 times consecutively during a 3 month period before finally breaking out in early August. Our AI script signalled a strong Buy Signal on the 28th July confirming the start of the last bull run phase which saw Bitcoin setting a new ATH just under $70K, a 1671% gain for BTC from the March 13th 2020 Bottom @ $3.8k. As mentioned previously during the last year we believe the current cycle we are experiencing is something we have never experienced before (extended super cycle), old cycles have been broke and it is important to look at new information and data to better understand where we are going in terms of innovation. Technically, looking at the current structure of Bitcoin, we have a head and shoulders pattern, if this pattern plays out, which in a downtrend could see BTC below the bottom experienced in May, note this is just technically, when looking at the market and on-chain analysis we can see that they are less and less Bitcoins available on exchanges, that coupled with the current inflation crisis & ongoing money printing are very strong fundamentals signals which are very bullish on the price of Bitcoin. 2022 promises to be yet another explosive year for the industry and like experienced in the past, during these times you can really sniper in some great discounts for the next leg up, lets see how this plays out 🎯
Please see previous analysis below,
Bitcoin Update 05/01/21:
On the Daily Chart Bitcoin ( BTC ) has been in a consolidation period over the past month since the December crash. BTC has been consolidating in our Whale Accumulation Zone between $46k & $52k failing to retest the 61.80% fibs @ $53k. Since the December crash, we have been waiting for strong price action to give more clues on the Short-term Bitcoin direction. From the current price @ $44,108, Bitcoin has broken down out of our whale accumulation zone.
Further to this the 13ema has failed to cross up above the 50 sma and the current short-term sentiment of BTC is bearish and it's important to note that we could see the previous levels experienced in the summer where we bottomed @ $28K, although we hold a bullish sentiment for BTC , it is not impossible to revisit these previous levels as current structure on the Daily chart is broken and BTC is currently retesting the 38.20% fibs @ $43k, the next level of support is at the 23.60% fibs @ $37k and it will be interesting to see how the BTC price reacts to this support level as this has proven to be quite a strong level of support. Previous at this support level , BTC failed to break above the $37k level 3 times from the May Crash until the bottom which we reached towards the the end of July @ $29k. We have seen this play before, lets see how this one plays out 🚀
Please see previous analysis below,
Bitcoin Update 05/01/21:
On the Daily Chart Bitcoin ( BTC ) has been in a consolidation period over the past month since the December crash. BTC has been consolidating in our Whale Accumulation Zone between $46k & $52k failing to retest the 61.80% fibs @ $53k. Since the December crash, we have been waiting for strong price action to give more clues on the Short-term Bitcoin direction. From the current price @ $44,108, Bitcoin has broken down out of our whale accumulation zone.
Further to this the 13ema has failed to cross up above the 50 sma and the current short-term sentiment of BTC is bearish and it's important to note that we could see the previous levels experienced in the summer where we bottomed @ $28K, although we hold a bullish sentiment for BTC , it is not impossible to revisit these previous levels as current structure on the Daily chart is broken and BTC is currently retesting the 38.20% fibs @ $43k, the next level of support is at the 23.60% fibs @ $37k and it will be interesting to see how the BTC price reacts to this support level as this has proven to be quite a strong level of support. Previous at this support level , BTC failed to break above the $37k level 3 times from the May Crash until the bottom which we reached towards the the end of July @ $29k. We have seen this play before, lets see how this one plays out 🚀