Bullish
BTC has been in a downtrend since November however it is encountering crucial support reinforced by several indicators and factors. To start, it is encountering the support of one of the most well established long term channels in the crypto market (purple lines, thick). The RSI shows that once it has been falling consistently there is a spike in BTC price. Currently we have bounced back during an anomaly in the cycle back to the oversold areas which indicates that BTC could potentially bounce upwards. Furthermore, using the Bollinger Bands indicator we can see that the price is below the lower band therefore it is likely that it will snap back and meet resistance at the middle or upper Bollinger band. Additionally, the Fixed-Range Volume Profile Indicator on a 400 day Range shows the Point of Control (red line) to also be just below current price which is more than likely to act as support. Lastly a double bottom chart pattern is forming on and should support hold at around $32915-$35120 then BTC should be heading upwards to the next major resistance at $44000-$45000. Should BTC break the downtrend (orange trend) by bouncing off the support (lower blue rectangle) and break resistance (upper blue rectangle), thus confirming a Double Bottom char pattern then a BTC a reversal and newly established uptrend could be assumed if not assured. However, should BTC fail to bounce off the support (lower blue rectangle) and falls below it thus continuing to respect the downtrend then BTC should be considered still Bearish. In this case the next major support will be at the last ATL since start of 2021 around $28650.
Ultimately, I believe the support will hold.
I am not financial adviser DYOR.
BTC has been in a downtrend since November however it is encountering crucial support reinforced by several indicators and factors. To start, it is encountering the support of one of the most well established long term channels in the crypto market (purple lines, thick). The RSI shows that once it has been falling consistently there is a spike in BTC price. Currently we have bounced back during an anomaly in the cycle back to the oversold areas which indicates that BTC could potentially bounce upwards. Furthermore, using the Bollinger Bands indicator we can see that the price is below the lower band therefore it is likely that it will snap back and meet resistance at the middle or upper Bollinger band. Additionally, the Fixed-Range Volume Profile Indicator on a 400 day Range shows the Point of Control (red line) to also be just below current price which is more than likely to act as support. Lastly a double bottom chart pattern is forming on and should support hold at around $32915-$35120 then BTC should be heading upwards to the next major resistance at $44000-$45000. Should BTC break the downtrend (orange trend) by bouncing off the support (lower blue rectangle) and break resistance (upper blue rectangle), thus confirming a Double Bottom char pattern then a BTC a reversal and newly established uptrend could be assumed if not assured. However, should BTC fail to bounce off the support (lower blue rectangle) and falls below it thus continuing to respect the downtrend then BTC should be considered still Bearish. In this case the next major support will be at the last ATL since start of 2021 around $28650.
Ultimately, I believe the support will hold.
I am not financial adviser DYOR.
Comment:
If price breaks out in double bottom formation then after a relative jump it could fall back to meet newly established support at the top of the double bottom chart pattern, support should hold sending BTC back up and higher. If BTC fails to break vital resistance at $44000 to validate the double bottom pattern then it should go down and bounce of long established support (purple line). Following, price should bounce between this resistance and support in an ascending triangle pattern. Await confirmation of ascending triangle pattern by price exiting the ascending triangle before entering long position.