Hello traders,
Looking at daily chart for Bitcoin, we see that daily consolidation has started few days ago, and the price remain tightly squeezed between $5000 and $5100.
Historical speaking, when Bitcoin reaches overbought or oversold territories in daily chart, the price bounces at least 20% majority of time. In this Bitcoin rally, however, we only see 10% retracement so far, which indicates some strength. However, there are few reasons to believe that further downside may expected in next few days:
1) Daily MACD bearish crossover
2) 4 Hour bear flag: the target for the bearish breakout overlaps with 50% fibonacci retracement
Despite the short-term bearish sentiment, I am becoming bullish on Bitcoin now. Ultimately, bulls need to re-test $6000 this year in order to build up more bullish momentum. In order to setup for $6000, Bitcoin needs to build support around $5400-$5500 region in case $6000 will get rejected. Therefore, after Bitcoin test $4600-$4700, there is a very high probability that Bitcoin will test $5400-$5500 (most likely it will get double top rejected), followed be daily bullish tightening equilibrium. (This is the most optimistic scenario)
Currently, I am patiently waiting for another drop down to 50% Fibonacci level ($4625 on binance) with stop at $5100.
Happy trading!
Looking at daily chart for Bitcoin, we see that daily consolidation has started few days ago, and the price remain tightly squeezed between $5000 and $5100.
Historical speaking, when Bitcoin reaches overbought or oversold territories in daily chart, the price bounces at least 20% majority of time. In this Bitcoin rally, however, we only see 10% retracement so far, which indicates some strength. However, there are few reasons to believe that further downside may expected in next few days:
1) Daily MACD bearish crossover
2) 4 Hour bear flag: the target for the bearish breakout overlaps with 50% fibonacci retracement
Despite the short-term bearish sentiment, I am becoming bullish on Bitcoin now. Ultimately, bulls need to re-test $6000 this year in order to build up more bullish momentum. In order to setup for $6000, Bitcoin needs to build support around $5400-$5500 region in case $6000 will get rejected. Therefore, after Bitcoin test $4600-$4700, there is a very high probability that Bitcoin will test $5400-$5500 (most likely it will get double top rejected), followed be daily bullish tightening equilibrium. (This is the most optimistic scenario)
Currently, I am patiently waiting for another drop down to 50% Fibonacci level ($4625 on binance) with stop at $5100.
Happy trading!
Comment:
That's why stop is necessary! Sold at $5150 and see how Bitcoin reacts at $5100.
Comment:
Bitcoin is about to make decision now. Bulls and bears don't have much space to work with as the last week candle body is way too tight. From this point on anything above $5172 will be a bullish entry and anything below $5129 will be bearish entry in weekly chart. At the time of writing, Bitcoin found resistance at $5167 which is not a great sign. Some alt coins are pumping but they are showing sign of weaknesses as well.
Comment:
Looks like it will be another bearish week.
Bears successfully pushed the price below previous weekly closing.
It seems like Bitcoin is retesting $5130 again, but not attracting buyers.
Bears successfully pushed the price below previous weekly closing.
It seems like Bitcoin is retesting $5130 again, but not attracting buyers.
Comment:
Yup that $5130 rejection on top of bitcoin cash sv delisting on binance triggered bear attack.
Next support is around $4850-$4920.
Next support is around $4850-$4920.
Comment:
I am switching to bitmex chart here because it shows somewhat different picture.
I am starting to see double bottom formation in the chart, which indicates potential short term trend reversal (hourly RSI is in oversold region). However, there is a potential bear wedge/flag play as the selling volume was somewhat enormous. It would be nice if we see bullish divergence play in next 24 hours.
The entry for XBTUSD will be $5055 and short term exit will be $5127.
In case of bearish breakout, there is a support at $4935, followed by $4800.
I am starting to see double bottom formation in the chart, which indicates potential short term trend reversal (hourly RSI is in oversold region). However, there is a potential bear wedge/flag play as the selling volume was somewhat enormous. It would be nice if we see bullish divergence play in next 24 hours.
The entry for XBTUSD will be $5055 and short term exit will be $5127.
In case of bearish breakout, there is a support at $4935, followed by $4800.
