Why I think that Bitcoin is in the bear downtrend?
Hey Tradingview crypto community!
Today I would like to share my TA on the price of Bitcoin and explain why I believe that it is in the bear downtrend teritorry.
In this idea I have my focus on the following few scenarios:
1. Looking at the weekly Relative Strength Index, we can see that there is a bearish divergence with RSI trending down and is currently sitting
just above 40 level. This level on a weekly timeframe has always been an important level in the past. Should the RSI for Bitcoin break below 40 this
would indicate that Bitcoin is due for capitulation and further move down.
2. Looking at the weekly timeframe, we have used 21 Day Exponential moving average (EMA) and 50 Day moving average (MA). In the past, and since 2018 there was a cross over of 21 Day EMA from above to the downside with 50 Day MA. Each time this happened, the Bitcoin price continued its downtrend trajectory and capitulated to the lower price levels after sideway consolidation for some time. This has happened once again with Bitcoin price is trending below both lines.
3. The Bitcoin weekly price candle has failed to break above the 21 Day EMA trend line for the 3 rd week in a row which has greater weight in favour of bears. This has always been the case in the past. The further Bitcoin moves down and away from 21 Day EMA, the higher probability for Bitcoin to capitulate at lower levels.
In my future ideas, I will share few other solid reasons why I believe that we will see Bitcoin price breaking to the down side in the near future and finding its bottom in November. To support this I will be using Elliot Waves Theory, chart patterns, Fibonacci levels, multiple indicators and some creativity.
I will also be sharing my best strategies how to find the right entry point with use of TA indicators and some innovative Marco signals.
Stay tuned! Stay Crypto!
Today I would like to share my TA on the price of Bitcoin and explain why I believe that it is in the bear downtrend teritorry.
In this idea I have my focus on the following few scenarios:
1. Looking at the weekly Relative Strength Index, we can see that there is a bearish divergence with RSI trending down and is currently sitting
just above 40 level. This level on a weekly timeframe has always been an important level in the past. Should the RSI for Bitcoin break below 40 this
would indicate that Bitcoin is due for capitulation and further move down.
2. Looking at the weekly timeframe, we have used 21 Day Exponential moving average (EMA) and 50 Day moving average (MA). In the past, and since 2018 there was a cross over of 21 Day EMA from above to the downside with 50 Day MA. Each time this happened, the Bitcoin price continued its downtrend trajectory and capitulated to the lower price levels after sideway consolidation for some time. This has happened once again with Bitcoin price is trending below both lines.
3. The Bitcoin weekly price candle has failed to break above the 21 Day EMA trend line for the 3 rd week in a row which has greater weight in favour of bears. This has always been the case in the past. The further Bitcoin moves down and away from 21 Day EMA, the higher probability for Bitcoin to capitulate at lower levels.
In my future ideas, I will share few other solid reasons why I believe that we will see Bitcoin price breaking to the down side in the near future and finding its bottom in November. To support this I will be using Elliot Waves Theory, chart patterns, Fibonacci levels, multiple indicators and some creativity.
I will also be sharing my best strategies how to find the right entry point with use of TA indicators and some innovative Marco signals.
Stay tuned! Stay Crypto!