As you'll all be aware, we unfortunately broke the 37k support yesterday and fell down to the 34.7k support where bears thankfully found some resistance.
My bias is switching more to bearish for now as all the ground we made with the previous bullish breakout has been given back and once again the support of 36.8k/37k has now turned resistance, + the 200 EMA is now looking we are having a rejection.
Staying neutral is the key to not being burned.
We have also seen hundreds of millions of dollars worth of bitcoins being moved to the Binance exchange signalling whales might be making some moves soon.
It is unsustainable for the price to continue falling this aggressively like we saw last week, I feel like we are due a pullback of between +3%/+6% before we get any more downside.
The only way my bias would change to bullish would be if we can break back above the 37.8k level and come back down to confirm this level is now support, then an aggressive push to the upside and a solid close via the 4hr chart with minimal wick.
An excellent analysis, considering the convergence of bitcoin and gold and the critical point in which both symbols are located, it can be said that the main direction of their trend is clear, so the probability of ascent and descent is equal, but given that the probability of gold ascending is greater than its descent. We can have the same opinion for Bitcoin.
AlkalineFX
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Clean charting
DutchyFX
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Thank you! Very true there has been a clear convergence between Bitcoin and gold this past week, let’s see if that turns into divergence with one breaking out or a continuation of what we have seen 🤷🏻♂️
Also we have the divergence/negative correlation between gold and the DXY and how the DXY has been climbing unsustainably this past week + it’s approaching an upper trend resistance set back in Sept 2020 so we could see a nice pull back on the DXY next week, this could result in a pump in gold and potentially Bitcoin if this convergence continues between those two 🧗🏻♂️🏄🏻♂️