Hi,
Over a year, we can say that the price of Bitcoin is in the bearish market. Do you want it or not but we have several confirmations from the price action which confirms that it is true.
Bearish confirmations from the Daily timeframe:
1. The correction from the top is more than 26% (standard bearish market definition is 20% correction from the top)
2. Almost all the bullish trendlines are broken, the drawn white trendline needs a Daily candle close below of it and it will be confirmed - basically the key criterion.
3. We have a first lower low (LL) since Sept. of 2020
4. We have Daily candle closes below 50EMA. Haven't seen it since Oct. of 2020
These are major criteria that allow me to think that the bearish market has started. I don't know how long it will last but still, I want to point out some areas which can play important role in the further price action.
The first important area comes around 40k, if the price falls lower than the current price then I think this price zone will stop it and even can produce reversals (if the price reaches there I will make an update).
It depends on how today's candle will close. If it closes below the trendline the 50k retest and we are going approach 40k.
I'll start to write a long post but I started to think that the whole concept of this will be ruined after today's candle closes above 50k and above the trendline.
So, take this post as an alert and you have been worn ;)
Stay healthy,
Vaido
Over a year, we can say that the price of Bitcoin is in the bearish market. Do you want it or not but we have several confirmations from the price action which confirms that it is true.
Bearish confirmations from the Daily timeframe:
1. The correction from the top is more than 26% (standard bearish market definition is 20% correction from the top)
2. Almost all the bullish trendlines are broken, the drawn white trendline needs a Daily candle close below of it and it will be confirmed - basically the key criterion.
3. We have a first lower low (LL) since Sept. of 2020
4. We have Daily candle closes below 50EMA. Haven't seen it since Oct. of 2020
These are major criteria that allow me to think that the bearish market has started. I don't know how long it will last but still, I want to point out some areas which can play important role in the further price action.
The first important area comes around 40k, if the price falls lower than the current price then I think this price zone will stop it and even can produce reversals (if the price reaches there I will make an update).
It depends on how today's candle will close. If it closes below the trendline the 50k retest and we are going approach 40k.
I'll start to write a long post but I started to think that the whole concept of this will be ruined after today's candle closes above 50k and above the trendline.
So, take this post as an alert and you have been worn ;)
Stay healthy,
Vaido