HELLO ALL AND GOOD DAY TO EVERYONE.
After breaking the downtrend resistance mentioned in the previous update, BTC was unable to follow through due to the 55D EMA. Only dipping into the supply zone just above. We are now consolidating just beneath it.
On the 4H chart we can see some indecision after attempting the above mentioned EMA
The 1H chart shows us some clarity as to why this happened. There is a clear bearish divergence with the volume, RSI and MACD with the higher high at $7,200. This resulted in a rising channel which is now expected to break to the downside. If this price action is only to come and retest the downtrend resistance as support on a higher time frame, we will need to hold around $6,925. The measured move from this channel should produce a wick down to the $6,840 range.
This is only my opinion and not trade advice.
After breaking the downtrend resistance mentioned in the previous update, BTC was unable to follow through due to the 55D EMA. Only dipping into the supply zone just above. We are now consolidating just beneath it.
On the 4H chart we can see some indecision after attempting the above mentioned EMA
The 1H chart shows us some clarity as to why this happened. There is a clear bearish divergence with the volume, RSI and MACD with the higher high at $7,200. This resulted in a rising channel which is now expected to break to the downside. If this price action is only to come and retest the downtrend resistance as support on a higher time frame, we will need to hold around $6,925. The measured move from this channel should produce a wick down to the $6,840 range.
This is only my opinion and not trade advice.