BTCUSDT
Dec.5.21
Bitcoin is out of its upward channel and the bears have taken control finally. Losing 120 day support and breaking below 51500 has changed the sentiment to bearish.
The price flash dumped to 42000$ which effectively wiped all the longs and the funding rates are all reset so there is enough fuel for the upward potential movement. There was also a fair price gap at 47500-43800 which got filled. The gap on CME also got filled but there is one remaining at 32480-34420 which has not been filled and I believe the trend will continue from there.
🟥Reasons for bearish view and bearish continuation:
Break of the trend line of the channel
Losing 120 day MA
Losing support at 53357
On chain data (showing a drop in the wallets with 100+ bitcoin + bitcoin reserve increase in exchanges)
Presence of gap on the CME at 34420-32480
Break in the total chart structure
🟩Reasons for Bullish view:
Closing above 48900 on the daily
Closing above 300 day MA
Price pullback to 0.618 fib and good demand
Closure above 39600 (forming HL)
The possibility of a new gap formation at 53500 on the CME (weekly closure) and wait for a new touch of BTC price there and closing the gap before market opens.
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🟩Supports:
48850
44270
37670
33000/29500 (demand zone)
🟥Resistances
52300
53300
55500
58500
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Fear and greed index:
Current = 18 =extreme fear
Yesterday = 25 = extreme fear
Last week = 27 = fear
Last month = 70 = greed
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My take is short term bullish to 53000 and a test of broken level and filling the gap on CME and then closing the other gap at 32-34k$.
Note that if we close daily above 53500 we will be again on the bull side.
Trade closed: target reached:
How does it look like now ;)