Bitcoin still not clear signs of a stable trend
Hi all,
Bitcoin made another attempt to break above $10,000 yesterday, but with no luck as it was immediately rejected and pulled back down to the mid-term diagonal resistance. Actually BTC made a very strange candle hitting both $10,000 and sub-$9,600 levels in the matter of just one more time (around 17:00 CET). The high volatility resulted in another upward movement to the lower end of the $10k-$9,950 resistance.
What we are seeing as of the time of writing is BTC struggling to surpass the diagonal resistance and now trading slightly lower, at $9,786.
On the 4-h chart, we see that the coin is still trading above the current uptrend, so I will be looking for support around $9,730-$9,740 if the current pullback is extended.
Other than that, I cannot see any reason to trade BTC now as it looks to be a pure gamble. We are in an uptrend, yes, but how sustainable is it given the recent rejection as both horizontal and diagonal resistances ?
I would prefer to wait and see how the current setup evolves and also monitor the momentum indicators, mainly RSI. As discussed on my previous idea here
RSI is pointing to a major move in the coming days, but what direction will the coin take is a wild guess.
Trading volumes are slightly higher today compared to Tuesday and Wednesday, but they are in synch with the price going down.
Cheers,
Bitcoin made another attempt to break above $10,000 yesterday, but with no luck as it was immediately rejected and pulled back down to the mid-term diagonal resistance. Actually BTC made a very strange candle hitting both $10,000 and sub-$9,600 levels in the matter of just one more time (around 17:00 CET). The high volatility resulted in another upward movement to the lower end of the $10k-$9,950 resistance.
What we are seeing as of the time of writing is BTC struggling to surpass the diagonal resistance and now trading slightly lower, at $9,786.
On the 4-h chart, we see that the coin is still trading above the current uptrend, so I will be looking for support around $9,730-$9,740 if the current pullback is extended.
Other than that, I cannot see any reason to trade BTC now as it looks to be a pure gamble. We are in an uptrend, yes, but how sustainable is it given the recent rejection as both horizontal and diagonal resistances ?
I would prefer to wait and see how the current setup evolves and also monitor the momentum indicators, mainly RSI. As discussed on my previous idea here
RSI is pointing to a major move in the coming days, but what direction will the coin take is a wild guess.
Trading volumes are slightly higher today compared to Tuesday and Wednesday, but they are in synch with the price going down.
Cheers,
Comment:
As I said - quite a risky trading BTC now. To be honest it took me by surprise as I did not expect that big of a drop. It re-tested the long-term downtrend straight away. I would short BTC if we see another rejection at the $9,500-$9,600 zone.
