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Quick glance: BTC had four successive days of decline after a rally past $42,000. Although the price has started declining, the traded volumes haven’t gone up. It indicates that we are not witnessing a selloff, but a minor profit booking.
Market in the last 24hrs The last 24 hours were pretty volatile. BTC is facing resistance at the 100 day MA.
Today’s Trend analysis Bitcoin’s run-up past $42,000 was fantastic. It is only natural that profit booking will come into the picture.
However, the decrease in the traded volume presents a bullish picture for BTC. The supply across exchanges is reducing as whales are still not selling their holdings.
The 50-day MA line will be the nearest strong support. If BTC stops its descent and takes support at the 50-day MA, it will likely be a buying opportunity.
Let me clarify why we are still bullish on BTC. First of all, the technical indicators present a long term bullish picture. Whales are still accumulating, and if demand picks pace, we will again see a short squeeze. It will liquidate several short positions driving prices higher.
Secondly, on the macro-economic front, the Taproot upgrade is a key talking point for several crypto enthusiasts. The mere anticipation of the upgrade would bring positive sentiment in BTC.
Right now the prudent thing to do would be to wait for the market to find support.
Price volatility remained high at approximately 4.81%, with the day's range between $37,966.00 — $39.792.83.
Price at the time of publishing: $38,485.64 BTC's market cap: $725.61 Billion
Out of 11 Oscillator indicators, 9 are neutral, 1 is bearish and 1 is bullish.
Out of 15 Moving average indicators, 1 is 'NEUTRAL', 7 are bearish and 7 are bullish.
Indicator summary is giving a ‘NEUTRAL’ signal on BTCUSD .
Volumes have decreased over the past 24 hours. ----------------------------------------------------------------------------------------
The analysis is based on signals from 26 technical indicators, out of which 15 are moving averages and the remaining 11 are oscillators. These indicator values are calculated using 24-hour candles.
Note: Above analysis would hold true if we do not encounter a sudden jump in trade volume .
Good breakdown. Don't have skills/time/patience to trade but I do dca & hold on the "dips" for the long game. Agree that buying the dip is prudent
Mudrex
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@InvestRegularlyandDiversify, That is indeed a very logical choice my friend. You could also explore Algo-trading, where automatic bots do the trades on your behalf. Just a suggestion :)
I see this pullback as a healthy correction, hence waiting for another break out since rsi stoch rsi show us we are at a bottom. Another thing to note we have crossed over our middle bb band and now sitting on our lower band with that said we can assume another move up is likely if we follow some of these indicators.
Mudrex
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@Crypto-RyGuy, Definitely. Even I am waiting for possible reversal signs. Let's see
jhalillimbona01
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Do i need to wait 34k? Before i buy?
Mudrex
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@jhalillimbona01, depends on your time horizon for holding. If you are a short term trader, you can look at breakouts. In this case, if BTC breaks 40k decisively, you buy with a desired target and a stop loss. However, for the longer term, you can buy the dips. 34.6k would be a good buying zone, if BTC settles there.
Mudrex
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@jhalillimbona01, Another strategy would be DCA or Dollar Cost Averaging. Buy the dips. If BTC dips even lower, buy again and average your cost.