Bitcoin : A review on the higher time frame
Bitcoin is entering a very long consolidation phase which makes the volume decrease over time which causes a lot of manipulation in the short time frame and lower degree in the intraday basis. Therefore, I choose to cover the movement on the higher time frame which makes the significant zone become more clearer.
Currently, the price is still trending above the white zone which is becoming a strong support zone for bitcoin. You can see that this white zone could be the neckline that has been broken by the price which previously formed an inverted head and shoulder as well. Therefore, we can assume that the current drop could be the phase 2 of break out strategy which is retesting previous broken resistance as a support. In other word, the next huge movement will be determined by whether the price can breaks below this white zone or will it able to hold the price and having a bounce to confirm the next cycle of bullish market.
For now, the MACD histogram on the weekly time frame is printing a tick toward the negative side for the first time which is showing us another weakness in momentum as well.
In my opinion, the price will has another consolidation continues above the white support zone before it determine the next target to be. That's why we have to be extra patient at this level. Under a long consolidation like this, there will be a lot of choppy movement even it's on the weekly time frame. Watch the liquidation zone toward the $9000 region as well (as the potential WXY pattern which I've anticipated at previous analysis).
Currently, the price is still trending above the white zone which is becoming a strong support zone for bitcoin. You can see that this white zone could be the neckline that has been broken by the price which previously formed an inverted head and shoulder as well. Therefore, we can assume that the current drop could be the phase 2 of break out strategy which is retesting previous broken resistance as a support. In other word, the next huge movement will be determined by whether the price can breaks below this white zone or will it able to hold the price and having a bounce to confirm the next cycle of bullish market.
For now, the MACD histogram on the weekly time frame is printing a tick toward the negative side for the first time which is showing us another weakness in momentum as well.
In my opinion, the price will has another consolidation continues above the white support zone before it determine the next target to be. That's why we have to be extra patient at this level. Under a long consolidation like this, there will be a lot of choppy movement even it's on the weekly time frame. Watch the liquidation zone toward the $9000 region as well (as the potential WXY pattern which I've anticipated at previous analysis).
