RED Bitcoin, Another Leg Down

The short-term bears are now moving to the higher timeframes.

Earlier we looked at Bitcoin (BTCUSD) 1H (1 hour per candle) and we saw the early bearish signals showing up.

This chart here is 4H, we have a few more signals telling us that prices are likely to drop...
Give me a minute of your time and let's have a look at this chart.

Feel free to hit LIKE now to get started by showing some support.


RED Bitcoin

Now, we have GREEN and RED.
This part is very easy.

The candles/price swings will always fluctuate between the two.

As we move up we go GREEN.
As we move down we go RED.

What I do here is just read the signals (translate the charts) for you.

So this is just my opinion and the charts can always change... But on top of the signals we also have experience... Sometimes the signals are good, sometimes we are tricked by manipulators and whales.

BTCUSD 4H Chart Signals

The last candle closed below EMA10.
It has strong bear volume.

Going back to basics, you know I always say that below EMA10 the potential goes bearish and above it bullish.

So now we have bearish potential on this timeframe.

The current candle is now trading below EMA21.

We have bearish divergence on both indicators, MACD and RSI as mentioned before.

The MACD is also showing a bearish cross and the histogram has gone red.

This tells us that there is potential for lower prices.

The RSI has broken below support as well.
The 0.618 Fib. retracement level broke down:
Above 50 it is still strong but trending lower.
These are just "signals"...

When we put them all together we can get a better picture as to what is happening.

• Many bearish signals favor the bears.
  
• Many bullish signals favors the bulls.
  

Conditions For Change

Now, if we see prices moving back above EMA10...
If we see the last high being taken out and Good/Strong volume coming in... These signals become invalidated.

That's it for now...

What's your take on this analysis?
Better?

Thanks a lot for your support!

Namaste.