BTC/USD: A Potential Trend Reversal Spotted Through Pullbacks

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In this analysis, I'll be analyzing Bitcoin's daily chart, and providing an explanation on pullbacks.

Pullbacks Explained
- A pullback is a temporary reversal in the price action of an asset or security.
- Pullbacks can provide an entry point for traders looking to enter a long position when other technical indicators remain bullish, and vice versa for shorts.
- In this particular case, we have seen a bearish pullback, which was a good opportunity to take a short position, as Bitcoin failed to break through the trend line resistance.

Analysis
- To begin with, we can first see that Bitcoin has clearly deviated from its uptrend, marked by the blue trend line
- The support has now become resistance.
- This was due to the breakdown that led Bitcoin to sub 10k price ranges
- Bitcoin is trading within a descending parallel channel, creating lower highs and lower lows
- While this could sometimes be a bullish setup as an accumulation, the Relative Strength Index (RSI) suggests otherwise
- The RSI has been forming lower highs as well, and while it has managed to break out of the trend line during Bitcoin's pullback, it seems as though Bitcoin's failure to break through the trend line resistance will drive the RSI further downwards
- This indicates that any bullish move that Bitcoin might attempt, will lack the proper bullish strength to support it
- After the breakdown, prices consolidated below the 0.236 Fibonacci retracement resistance
- After the pullback, prices are now testing the 0.236 support.
- Should we see further bearish confirmation, the next levels of support to have our eyes on are the channel support and 0.382 fibonacci support.
- While Bitcoin has been showing mixed signals for the past few weeks, the daily chart now demonstrates a clearer picture of the overall trend
- Also taking into consideration the fact that Bitcoin has been showing a paired movement with the stock market, the stock market's correction driven by the fall of tech stocks, lines up with Bitcoin's current price action

Conclusion
Bitcoin bulls will have to wait for further confirmation such as a potential formation of a divergence at key support levels, or indicators showing signs of the cryptocurrency being oversold.

Don't predict the market. The future is all about preparation, not prediction. Take it by levels, and play by probabilities.
-Michael Wang-