After sinking under the horizontal support at 9950, the ascending trendline and the MA50 Bitcoin seems to have rebounded but will this uptrend be sustained? My answer is I dont think so.
If we look at the RSI we see that it is still plummeting, not gaining momentum at all and it printed a hanging man candlestick yesterday what it is a weak sign for a reversal. Now lets have a look at 4H chart:
First thing we see, Bitcoin rebounded from an oversold area so the jump was kinda expected (green circle at RSI chart)
We also see that it is finding real resistance at the 50MA (blue line) - look at the highlighted yellow area
The price is also finding resistance at an area that has acted as support/resistance many times in the recent past (black line with highlighted red circles) and it is not breaking it.
Now it is starting to look more bearish but lets look at the 1H chart:
We see that same area of support/resistance marked with the black line. Nothing new.
It is interesting to see how the 50MA in 4H chart is very close to the 200MA in 1H chart and the price is respecting it perfectly.
RSI: Price looked like it wanted to go higher but RSI is losing strength. We all know what that means.
So Bitcoin is looking very bearish. Does that mean it cannot jump higher and go crazy bullish?? Of course not! Anything is possible. All these signals only mean that there are more probabilities that the price retraces to the 8500 area or even lower before maybe continue an uptrend.
Do you think differently? Let me know in the comments!!! Happy trading!
If we look at the RSI we see that it is still plummeting, not gaining momentum at all and it printed a hanging man candlestick yesterday what it is a weak sign for a reversal. Now lets have a look at 4H chart:
First thing we see, Bitcoin rebounded from an oversold area so the jump was kinda expected (green circle at RSI chart)
We also see that it is finding real resistance at the 50MA (blue line) - look at the highlighted yellow area
The price is also finding resistance at an area that has acted as support/resistance many times in the recent past (black line with highlighted red circles) and it is not breaking it.
Now it is starting to look more bearish but lets look at the 1H chart:
We see that same area of support/resistance marked with the black line. Nothing new.
It is interesting to see how the 50MA in 4H chart is very close to the 200MA in 1H chart and the price is respecting it perfectly.
RSI: Price looked like it wanted to go higher but RSI is losing strength. We all know what that means.
So Bitcoin is looking very bearish. Does that mean it cannot jump higher and go crazy bullish?? Of course not! Anything is possible. All these signals only mean that there are more probabilities that the price retraces to the 8500 area or even lower before maybe continue an uptrend.
Do you think differently? Let me know in the comments!!! Happy trading!