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In this post, we analyze Bitcoin's hourly chart through , in order to determine its and probabilities.
- After a huge drop testing the 10.5k support, Bitcoin has been consolidating within an ascending
- While it has formed higher lows and higher highs, this could be seen as a form of distribution before another leg down
- The setup appears to be a typical pattern, in which prices consolidate in a slight uptrend before breaking down for another leg
- The Simple Moving Averages ( SMAs ) are aligned in reverse: the 100 is at the very top, with the 50 and 20 below it.
- Bitcoin is currently testing the 0.5 resistance
- Above it, it also faces the middle trend-line resistance of the .
Long short ratios are at 70 to 30, with significantly more long positions. While this reflects the dominantly market sentiment, it also could be concerning from a contrarian point of view, as we have recently seen billions of long positions get liquidated from a sharp drop .
What We Believe
We believe that a corrective move is highly probable given the technical evidence substantiating cases for both and scenarios.
Let us know what you think in the comment section below