Since the last Friday, Bitcoin rose about 600 USD to approximately 20 200 USD, where it currently trades. Nevertheless, we maintain a grim view of Bitcoin, mainly due to the persistence of bearish fundamental and technical factors. Accordingly, we stick to our price targets at 17 500 USD and 15 000 USD. Although, we would like to acknowledge that Bitcoin might continue to be choppy for a little longer before regaining momentum to the downside.
Illustration 1.01
The daily chart of BTCUSD shows retracements toward 20-day SMA. These retracements act as corrections of the downtrend. Therefore, we will pay close attention to the ability of the price to stay above/below the 20-day SMA (above is bullish, below is bearish). If the price holds above the SMA for an extended period, that may imply another price increase before the breakdown.
Technical analysis - daily time frame
RSI exited the oversold zone, which is slightly bullish. Stochastic is neutral. MACD is slightly bullish; however, it remains in the bearish area. DM+ and DM- remain bearish. Overall, the daily time frame is neutral.
Illustration 1.02
The chart shows simple support and resistance levels for BTCUSD.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Illustration 1.01
Technical analysis - daily time frame
RSI exited the oversold zone, which is slightly bullish. Stochastic is neutral. MACD is slightly bullish; however, it remains in the bearish area. DM+ and DM- remain bearish. Overall, the daily time frame is neutral.
Illustration 1.02
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Trade active:
Despite the ongoing bounce in the price, we remain bearish. Fundamental factors did not change. Although, there is still limited upside for the BTC in short-term.
Trade active:
The weekend session is relatively weak; we maintain our bearish stance and price targets.
