1- We fell below the 20 ema on the daily which in the last 3 rallies has been the significant point of a reversal to the downside.
2- There could be hope however, since so far we are bouncing off the 50 ema on the daily with a pin right around the .5 retracement as well, if you consider this rally a completed 1,2,3,4,5 structure. I say this could possibly be for a further bounce and ultimate continuation of the downward trend as news is not reflected positively in price and capital influx has been on a decline.
3- Selling volume is not decreasing which could be a bad sign. We don't need a capitulative sell off to signal a reversal and a bottom but the resistance is showing as bitcoin tries to move up.
4- Overall I am still bearish. Someone might look at the chart and say we are forming a bullish descending triangle from 8400 to 7350. The problem is you end up seeing exactly what you want to see. Your bias will tell you that its a bullish triangle, but it will conveniently discount the previous cases where exact triangles have turned into further sell offs. Right now bitcoin is looking like a lighter that runs out of fuel. We are getting lower to the point where we are only left with the sparks and nothing on the follow through. You can trade this pattern effectively if you free your mind from the HODL bullpen at every impulse mentality.
Conclusion- The sentiment is weak right now, and the release of the NYSE BAKKT
news was purposely done to try to resuscitate any hope. For bitcoin to move people have to get
involved that don't even care to look at it when its in their portfolio. Any positive news has
been from people in the space, which to say otherwise would be counterintuitive to their
business model. Hence why I could care less about any bitcoin related news. The price action
shows the true story.
2- There could be hope however, since so far we are bouncing off the 50 ema on the daily with a pin right around the .5 retracement as well, if you consider this rally a completed 1,2,3,4,5 structure. I say this could possibly be for a further bounce and ultimate continuation of the downward trend as news is not reflected positively in price and capital influx has been on a decline.
3- Selling volume is not decreasing which could be a bad sign. We don't need a capitulative sell off to signal a reversal and a bottom but the resistance is showing as bitcoin tries to move up.
4- Overall I am still bearish. Someone might look at the chart and say we are forming a bullish descending triangle from 8400 to 7350. The problem is you end up seeing exactly what you want to see. Your bias will tell you that its a bullish triangle, but it will conveniently discount the previous cases where exact triangles have turned into further sell offs. Right now bitcoin is looking like a lighter that runs out of fuel. We are getting lower to the point where we are only left with the sparks and nothing on the follow through. You can trade this pattern effectively if you free your mind from the HODL bullpen at every impulse mentality.
Conclusion- The sentiment is weak right now, and the release of the NYSE BAKKT
news was purposely done to try to resuscitate any hope. For bitcoin to move people have to get
involved that don't even care to look at it when its in their portfolio. Any positive news has
been from people in the space, which to say otherwise would be counterintuitive to their
business model. Hence why I could care less about any bitcoin related news. The price action
shows the true story.