The market reached 3500.00 level and if we look at 4H time frame, we will see the interesting setup. The price diverges with RSI and MACD histogram and it gives us a trend reversal signal based on a bullish divergence. The support zone at 3500.00 level can be the local bottom, but at 3000.00 level we have a very strong support. It means that if the price drops to 3000.00 support and bounce from this zone, it will be more logical and a trend reversal signal should be more reliable. If the price moves upward from 3500.00 level, we should be very careful. The upward movement probably won't be so stable and solid and the key resistance levels can be the targets for such movement. For moving above 6000.00 resistance level the market still needs solid fundamental support. What kind of events we have to expect which really can push the market upward, I will write with more details in my new post about the future of crypto.
If we look at the indicators we get such signals:
- RSI confirms a price reversal from 3500.00 level in the oversold zone
- MACD histogram is going to confirm a price reversal
- MACD lines still support the downward movement
- DMI is bearish and confirms trend market conditions
- ADX line is falling and it gives a signal confirming a possible correction movement.
As a conclusion:
In spite of we have the trend reversal signal which is confirmed by the bullish divergence, we should not expect for a strong and reliable upward movement and the beginning a new uptrend. The market still does not have fundamental support and strong demand. The reversal levels for the possible upward movement can be 5000.00 and 6000.00 key resistance levels.
The market still keeps potential for reaching 3000.00 strong support zone and bouncing from this level will be more logical for further upward movement.
If we look at the indicators we get such signals:
- RSI confirms a price reversal from 3500.00 level in the oversold zone
- MACD histogram is going to confirm a price reversal
- MACD lines still support the downward movement
- DMI is bearish and confirms trend market conditions
- ADX line is falling and it gives a signal confirming a possible correction movement.
As a conclusion:
In spite of we have the trend reversal signal which is confirmed by the bullish divergence, we should not expect for a strong and reliable upward movement and the beginning a new uptrend. The market still does not have fundamental support and strong demand. The reversal levels for the possible upward movement can be 5000.00 and 6000.00 key resistance levels.
The market still keeps potential for reaching 3000.00 strong support zone and bouncing from this level will be more logical for further upward movement.
💰COPY MY TRADES FOR FREE! Join 👉 bit.ly/41DKDBD
📣 Get Welcome Bonuses for 1st Trade 👉 bit.ly/bonus_bybit
💎 Share My BEST Trades here 👉 bit.ly/wubits
📣 Get Welcome Bonuses for 1st Trade 👉 bit.ly/bonus_bybit
💎 Share My BEST Trades here 👉 bit.ly/wubits