After rising +60% off of the $3,850 low, Bitcoin is finding resistance at the 38.2% Fibonacci retracement level near $6,400. Price trading below the 38.2% fib level indicates an overall bearish trend for price and the potential for more weakness. Until price moves above the 50% fib level price will have negative bias. A move above the 61.8% fib level is needed for positive trend confirmation.
The previous two daily price candles were long-legged doji candles which are candles with small bodies and long wicks and indicate trader indecision. The wicks represent the daily highs and lows made on each day, and the small body indicates that traders closed the daily price near where it opened showing hesitation by both bulls and bears to move price in either direction with conviction.
Price is also trading below the Trend Wave which indicates a negative trend for price. In order to regain a positive trend, price needs to move back above the trend wave.
The Price Percent Oscillator(PPO) is attempting a positive crossover which is when the green PPO line crosses above it’s purple signal line. The PPO trending below the signal line indicates negative price momentum. The PPO is also well below the 0 level which indicates overall negative price momentum. The PPO below 0 is bearish, while a PPO reading above 0 is considered bullish.
The Relative Strength Index(RSI) is trending below the 50 level which indicates overall negative price momentum. The RSI is also stalling out at the yellow line which is the middle of the Bollinger Bands(volatility indicator). The RSI below the yellow line indicates a negative price trend, or potential for bearish volatility, while an RSI reading above the yellow line indicates a positive price trend, or bullish volatility.
The overall trend and momentum for Bitcoin remains bearish even after the +60% jump off of the lows and was likely a reactionary bounce off of extreme oversold conditions.
The previous two daily price candles were long-legged doji candles which are candles with small bodies and long wicks and indicate trader indecision. The wicks represent the daily highs and lows made on each day, and the small body indicates that traders closed the daily price near where it opened showing hesitation by both bulls and bears to move price in either direction with conviction.
Price is also trading below the Trend Wave which indicates a negative trend for price. In order to regain a positive trend, price needs to move back above the trend wave.
The Price Percent Oscillator(PPO) is attempting a positive crossover which is when the green PPO line crosses above it’s purple signal line. The PPO trending below the signal line indicates negative price momentum. The PPO is also well below the 0 level which indicates overall negative price momentum. The PPO below 0 is bearish, while a PPO reading above 0 is considered bullish.
The Relative Strength Index(RSI) is trending below the 50 level which indicates overall negative price momentum. The RSI is also stalling out at the yellow line which is the middle of the Bollinger Bands(volatility indicator). The RSI below the yellow line indicates a negative price trend, or potential for bearish volatility, while an RSI reading above the yellow line indicates a positive price trend, or bullish volatility.
The overall trend and momentum for Bitcoin remains bearish even after the +60% jump off of the lows and was likely a reactionary bounce off of extreme oversold conditions.