BITCOIN: Short Term Reversal, Long Term Bullish?!

X FORCE CRYPTO ANALYSIS:


After Bitcoin's massive bullish breakout, it seems as though we have resumed back to a bullish territory based on volume and percentage increase. This does not mean we will go straight up from here. Our technical analysis demonstrates that probabilities for a bearish case for the short term are higher just based on current data. Here's why.

Bearish Evidence

- We are currently seeing a textbook bearish divergence on the 4h chart, with higher highs on the price movement (based on where the candles close), and lower highs on the Relative Strength Indicator (RSI), demonstrating signs of weakening strength
- The Moving Average Convergence Divergence (MACD) is showing a potentiality for a dead cross, as the histogram decreases.
- Based on elliott waves, we have seen a 12345 impulse wave from 7.3k levels to 10.5k, and it seems as though we are currently undergoing a textbook ABC correction wave.
- This appears to be a smaller cycle of the bigger elliott wave count we have previously analyzed.
- Based on fibonacci levels and price movement, we have extremely strong resistance at 9.78k, and a huge support zone between 8.5k and 8.9k, with the 200 Standard Moving Average (MA) also acting as support on the daily chart.

Market Sentiment:

There are currently more longs than shorts, with the long short ratio at around 6:4.

What We Believe

Although we could see a breakout of the potential bull flag pattern we are seeing right now, we believe that there is a higher probability of a drop happening before we see another impulse move upwards.

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Comment:

Currently still trading below our .382 fib level.