Bitcoin: Learning from Past Mistakes 1D (Jun. 08)

X Force Global Analysis:


In this analysis, we explore a potentially bullish alternative case, in which the bearish divergence pattern - the central argument for a bearish scenario - is negated.

Analysis

- We are currently looking at an extended bearish divergence on the daily
- Prices are creating higher highs, while indicators create lower highs
- Previously, in our bullish rally from 3.1k to 14k, we have had similar price movements
- In an uptrend, a bearish divergence forms, and in lieu of a bearish breakdown, prices continue in an uptrend, negating the divergence
- All previous cases have shown the formation of higher lows, as well as prices trading above the 50 Simple Moving Average (SMA)
- Given the previous cases, it's not completely improbable to see a potential continuation of the bullish rally

Market Sentiment:

Long short ratios are at 65 to 35, with still significantly more longs than shorts.


What We Believe

While technicals demonstrate signs of bearishness, it's also important to note that there have been past cases of bullish technicals being negated only to see a continuation of a bullish rally. Again, even for the bullish scenario, a break and close above 10.5k resistance levels are critical for solid confirmation.

Trade Safe.