Happy Monday all, here we back again with the technical analysis of bitcoin based on the latest weekly candle that has closed as well. Let's enjoy this!
Monday always becomes the most crucial and important day so far because of the weekly candle closure. The weekly candle is very important to identify the next possible movement in the next days as well whether it's going to be bullish or bearish. Looking at the chart below, current weekly candle is once again looking indecision because of current close that forms a type of long legged doji which represents a war between bulls and bears are in the same level of power that's why the open and close price is almost the same. Beside, the price is still trending right below the white resistance trend line which is becoming a strong resistance. Trending slightly below this line for a long time will cause a negative outcome as the bulls slowly losing strength and there will be a decrease in trust level from the retail bulls. In other words, there will be a push downward if the price can't claim the breaks out of the white resistance trend line in near future.
If at the previous paragraph we discuss about the potential bad moves, this paragraph will explain about the potential good moves. Yes, the good moves is that the price is still trending right above the yellow trend line which is the broken resistance as well which is now becoming support. Current long legged doji candle could be the action of the phase 2 breaks out strategy which is retesting the previous broken resistance as support. If this scenario plays out, we must wait for a bullish candle with bunches of volume to support this moves. In this scenario, we'll expect an upward moves to breaks out of the white resistance trend line.
From now on, in the indecision phase like this, we must wait for the price to give further confirmation whether it's going to breaks out to the upside or to the downside. But, as long as the price doesn't reclaim below the yellow trend line, I'll keep my bullish bias.
Monday always becomes the most crucial and important day so far because of the weekly candle closure. The weekly candle is very important to identify the next possible movement in the next days as well whether it's going to be bullish or bearish. Looking at the chart below, current weekly candle is once again looking indecision because of current close that forms a type of long legged doji which represents a war between bulls and bears are in the same level of power that's why the open and close price is almost the same. Beside, the price is still trending right below the white resistance trend line which is becoming a strong resistance. Trending slightly below this line for a long time will cause a negative outcome as the bulls slowly losing strength and there will be a decrease in trust level from the retail bulls. In other words, there will be a push downward if the price can't claim the breaks out of the white resistance trend line in near future.
If at the previous paragraph we discuss about the potential bad moves, this paragraph will explain about the potential good moves. Yes, the good moves is that the price is still trending right above the yellow trend line which is the broken resistance as well which is now becoming support. Current long legged doji candle could be the action of the phase 2 breaks out strategy which is retesting the previous broken resistance as support. If this scenario plays out, we must wait for a bullish candle with bunches of volume to support this moves. In this scenario, we'll expect an upward moves to breaks out of the white resistance trend line.
From now on, in the indecision phase like this, we must wait for the price to give further confirmation whether it's going to breaks out to the upside or to the downside. But, as long as the price doesn't reclaim below the yellow trend line, I'll keep my bullish bias.
