Bitcoin: Hourly Fractal Analysis 1H (Apr. 22)

X FORCE GLOBAL ANALYSIS:


Bitcoin has been consolidating on the hourly, after a bearish move down. In this analysis, we compare the fractals of Bitcoin's current hourly chart, compared to that of April 6, 2020

Analysis

- We can first see that Bitcoin fails to break through the descending trend line resistance marked in the dotted white line
- The bearish move down breaks through the ichimoku cloud support
- During this period, the Relative Strength Index (RSI) also shows a downtrend, with lower highs and lower lows
- The Moving Average Convergence Divergence (MACD) also shows lack of momentum, as the moving averages move in a downtrend during this period
- After reaching support, Bitcoin consolidates in a triangle, with the RSI and MACD on the rise again
- We then see a bullish breakout through the ichimoku cloud resistance
- However, we are once again rejected by the descending trend line resistance, and return to previous support levels

Market Sentiment:

Long short ratios are at 63 to 37, with still significantly more bullish sentiment despite having broken down from 7k levels.

What We Believe

Should this fractal play out, we believe that a break and close above the descending trend line resistance would be necessary for the continuation of a rally.

Trade Safe.