We have to remember, that there are three directions in a technical chart analysis: bullish, bearish and sideways.
To get the big picture, I analyze the monthly chart of Bitcoin today. We realize that on the monthly chart, the down channel is not yet broken. Furthermore, the last three months closes are approximately in the middle (blue square) of the high and low, which are marked with a blue line. This means nothing but there is no momentum in either direction. For already three months, BTCUSD is in a sideways movement and the swings are getting smaller and smaller. However, during the month of March, there has to be a decision. Will it break out on the upper side of the channel and either move upwards or continue its sideways movement? Alternatively, will the red upper channel main resistance line be strong enough for pushing the price of Bitcoin further down to 1140 USD at the green channel main support line?
I still stay at the sideline until a new trend establishes. In such a sideways movement, losing money in narrow swing trades is highly probable.
To get the big picture, I analyze the monthly chart of Bitcoin today. We realize that on the monthly chart, the down channel is not yet broken. Furthermore, the last three months closes are approximately in the middle (blue square) of the high and low, which are marked with a blue line. This means nothing but there is no momentum in either direction. For already three months, BTCUSD is in a sideways movement and the swings are getting smaller and smaller. However, during the month of March, there has to be a decision. Will it break out on the upper side of the channel and either move upwards or continue its sideways movement? Alternatively, will the red upper channel main resistance line be strong enough for pushing the price of Bitcoin further down to 1140 USD at the green channel main support line?
I still stay at the sideline until a new trend establishes. In such a sideways movement, losing money in narrow swing trades is highly probable.
Comment:
BTCUSD started a minor down move. It will meet at 10128 a strong support level that will probably stop a further fall to lower levels. If this 10128-level breaks, we will see a drop to 8742 and to the intermediate target of 5511.
