During the weekend, the price of Bitcoin traded mainly flat. For that matter, we have no reason to change our bearish bias. Just like over the past months, fundamental factors will continue to slow down the global economy, resulting in the declining economic performance of the stock market and companies slashing their economic projections.
In accordance with the Dow Theory, that will reflect the market transitioning from the 1st stage of the bear market into the 2nd stage. In our opinion, the cryptocurrency market will continue to drift to new lows, with many speculative coins going bust and never returning to the market.
We believe the persistence of bullish sentiment does not signal a market capitulation. Quite the contrary, we think it perfectly illustrates the vicious nature of the bear market, with retail investors addicted to buying dips and subsequently causing volatile movements up and down.
Because of that, we will continue to filter these movements and focus on the primary trend to the downside (as we do since November 2021). More details are described below in the text and the attached articles.
Illustration 1.01
Illustration 1.01 displays the hourly chart of BTCUSD. Two yellow arrows indicate bearish breakouts, which constitute new lows for Bitcoin since the end of the bear market rally.
Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Illustration 1.02
Illustration 1.02 shows the simple support and resistance levels for BTCUSD. If the price breaks below the immediate support level and stays there, it will further bolster the bearish case for Bitcoin.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily 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.
In accordance with the Dow Theory, that will reflect the market transitioning from the 1st stage of the bear market into the 2nd stage. In our opinion, the cryptocurrency market will continue to drift to new lows, with many speculative coins going bust and never returning to the market.
We believe the persistence of bullish sentiment does not signal a market capitulation. Quite the contrary, we think it perfectly illustrates the vicious nature of the bear market, with retail investors addicted to buying dips and subsequently causing volatile movements up and down.
Because of that, we will continue to filter these movements and focus on the primary trend to the downside (as we do since November 2021). More details are described below in the text and the attached articles.
Illustration 1.01
Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Illustration 1.02
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily 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.
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