I'm still here, just waiting, waiting and waiting, and trying to be patient. Every day it looks a bit harder but what we can do, that's the life of traders/investors. To be said, I have been quite quiet because the price of Bitcoin doesn't make sense to me, it makes some pumps and dumps just in the middle of nowhere. So, if you have tried to trade in recent weeks then probably your account is a bit smaller than before, if not KUDOS!
Not any significant signs to break either way. The price is held by Weekly 50EMA.
As you can see it has held it for several weeks. Tried to go down, failed. Tried to go up, failed. Even writing about it sounds like - small fake-out here and fake-out there.
As said, I have been quiet because for me, the current price action is just a game. I'll wait for the key levels. What are the key areas from where I'll start to look at charts more carefully?
Firstly I would like to talk about the scenario/breakout opportunity. For me, it looks like the short-term, or even the mid-term pressure/sideways movement should find its end after we have seen a strong Daily candle close above $41k. The price action needs to be good but in general, this is the level from where I want to look at what the altcoins do. Do they have the breakout opportunities, how strong they are and etc. Hopefully, I can do the analysis of the TOP10 mentioned altcoins soon enough ;)
So, the breakout opportunity is locked. If the breakout happens then how high we can go 50k? I don't know. $60? I don't know. New ATH? I don't know! The only thing I can see is that the short-term we can catch something.
Now the ugly part of the game. The 20k. Yes, there are quite a high odds that we can see these lower prices - 16k to 21k . If you see that the price of BTC is that low then buy whatever you can. Simple, you just have to be brave to buy from the bloody streets.
In Investing, What Is Comfortable Is Rarely Profitable!
Summary: Two options: firstly, waiting for a break above 41k, I'm starting to look at breakout opportunities from altcoins and carefully trying to catch some moves. Secondly, waiting for a 20k to buy whatever I want! Be patient and you will get rewarded after it!
Volume will determine the direction BTC's trend continues. The head and shoulders reversal pattern is finishing out, this is a reversal pattern and so far has determined BTC's reversal pattern and decrease in price from recent highs. As of the time I write this the reversal is still playing out.
Until above average volume / accumulation days are witnessed BTC will continue to trend down. Week ending May 17 was a large distrution week, the two weeks following, weeks ending May 24, and May 31 volume is too light to consider an upside reversal is taking place.
A bearish indicator is the 10EMA just broke down through the 21EMA. This along with the head and shoulders pattern is more selling pressue on BTC. What this means, is, "IF" the 50DMA is breached then 20K-18K range is likely.
Chart also shows the lack of conviction of buyers versus sellers in relation to volume.