Bitcoin's Upside is Extremely Limited, if Any Remains! (BTC)
Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! Looking at the four hour chart, we can see that Bitcoin has broken the primary uptrend that it was in, and has rolled over at the 61.8% retrace (grey horizontal trendline.) Now, price is falling back toward the support that it originally held after the rally, which is the light blue moving average. Looking at the four hour MACD, we can see that it has been steadily forming a bearish divergence, as price was trending higher. Furthermore, on the weekly RSI, BTC is severely overbought. So, there is an increasing amount of technical data that suggests that the upside is very limited, if there is any upside left at all (in the short term.)
After assessing all of these factors, I think it is likely that price will fall to the light blue moving average. From there, I think we could see a bounce, which could then form a head and shoulders pattern here on the four hour chart. Since there is currently not enough data to see if a head and shoulders will develop, that's more of a technical guess as to how the downside movement could develop. Ultimately, I do believe that we will head lower. We may still get another push higher, but I think that is very unlikely at this point. In fact, I sold all of my BTC on the 8th, with the belief that I will be able to buy at lower prices from here.
So, yes, I think that we will break down possibly in a head and shoulders on the four hour. You can see that the purple moving average is just below. That is the daily 200 EMA, which is the 1200 EMA on the four hour chart. I have drawn a rough sketch (dashes) of where the 200 and 50 EMAs will be in the near future, and I do expect price to return to the 200 EMA at a bare minimum. That is currently around 4650-4700. Personally, I believe that BTC will fall even lower than that, possibly into the high 3000s.
In addition to all of that, we can see that the MACD is beginning a new expansion to the downside, and it is about to cross the zero line, which is a technical sell signal. With so much data pointing to exhaustion, I will remain on the sidelines, until it is safe to reenter my position.
On a side note, we never physically came into contact with the overhead resistance zone, but BTC got pretty close. I am expecting a pullback now, but I believe that we will return to test that level in the not too distant future.
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-
After assessing all of these factors, I think it is likely that price will fall to the light blue moving average. From there, I think we could see a bounce, which could then form a head and shoulders pattern here on the four hour chart. Since there is currently not enough data to see if a head and shoulders will develop, that's more of a technical guess as to how the downside movement could develop. Ultimately, I do believe that we will head lower. We may still get another push higher, but I think that is very unlikely at this point. In fact, I sold all of my BTC on the 8th, with the belief that I will be able to buy at lower prices from here.
So, yes, I think that we will break down possibly in a head and shoulders on the four hour. You can see that the purple moving average is just below. That is the daily 200 EMA, which is the 1200 EMA on the four hour chart. I have drawn a rough sketch (dashes) of where the 200 and 50 EMAs will be in the near future, and I do expect price to return to the 200 EMA at a bare minimum. That is currently around 4650-4700. Personally, I believe that BTC will fall even lower than that, possibly into the high 3000s.
In addition to all of that, we can see that the MACD is beginning a new expansion to the downside, and it is about to cross the zero line, which is a technical sell signal. With so much data pointing to exhaustion, I will remain on the sidelines, until it is safe to reenter my position.
On a side note, we never physically came into contact with the overhead resistance zone, but BTC got pretty close. I am expecting a pullback now, but I believe that we will return to test that level in the not too distant future.
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-
Comment:
I meant to say daily*** rsi