Hello all,
As discussed in the past, BTC was trading below the lower boundary of the downtrend corridor, which was built as an extension of the diamond pattern formation from early May. That figure preceded the Bitcoin crash.
The BTC/USD pair, however, managed to break above it three days ago for the first time since May 19.
So, what we have currently is the following:
Positive:
- Price trading above the 21-period EMA on the daily timeframe.
- As commented, it also broke the diagonal resistance coming from the diamond pattern from early May.
- There is a Bullish divergence signal on the RSI on daily timeframe.
- Above POC (Point of control) line on the volume profile indicator, which marks the zone with the biggest trading activity.
Negative:
- The BTC/USDT pair quickly broke above the the $33,500 - $39,000 range, but immediately went back into it.
- Significant lack of volume and momentum.
- Still struggling around the January peak at $42,000 - horizontal resistance.
- Weak weekly timeframe performance - quite bearish
What I will be looking for here in case the current level fails is a support at around the $38,700 level zone where the local horizontal line is located alongside the 50-day EMA and the mentioned horizontal downtrend. It is also where the point of control is situated, which makes the zone extremely important for keeping bull's hopes alive.
Best Regards
As discussed in the past, BTC was trading below the lower boundary of the downtrend corridor, which was built as an extension of the diamond pattern formation from early May. That figure preceded the Bitcoin crash.
The BTC/USD pair, however, managed to break above it three days ago for the first time since May 19.
So, what we have currently is the following:
Positive:
- Price trading above the 21-period EMA on the daily timeframe.
- As commented, it also broke the diagonal resistance coming from the diamond pattern from early May.
- There is a Bullish divergence signal on the RSI on daily timeframe.
- Above POC (Point of control) line on the volume profile indicator, which marks the zone with the biggest trading activity.
Negative:
- The BTC/USDT pair quickly broke above the the $33,500 - $39,000 range, but immediately went back into it.
- Significant lack of volume and momentum.
- Still struggling around the January peak at $42,000 - horizontal resistance.
- Weak weekly timeframe performance - quite bearish
What I will be looking for here in case the current level fails is a support at around the $38,700 level zone where the local horizontal line is located alongside the 50-day EMA and the mentioned horizontal downtrend. It is also where the point of control is situated, which makes the zone extremely important for keeping bull's hopes alive.
Best Regards
Comment:
$38,700 above is $36,700 of course sorry for the typo