We start with long term outlook, i go back to the monthly chart and fine me a current trading range to be aware of. Right now we are below the 12 period moving average which is a small cause of concern for any continued growth. This tells me we could still be in a correction from the all time high we have near six months ago now. I want to see the month end above 7200, and if that happens, that would be a good sign of growth for the future. RSI though has been in a sharp decline but still above 50 with monthly volume on a very sharp decline. This is a fear that confidence in Bitcoin has been on the decline. Even with the large amount of shorts going on, the selling volume is still on a decline. Les trading is going on every month we continue. Unless volume increases, the decline may continue to bleed out very slowly.
If we can not see a monthly close above 7200, we must find support around $6k. This is a strong area of support. This needs to hold or we can see a plummet to the 26 period moving average around $4374.
On the weekly chart, MACD is still very bearish with no crossovers in sight. RSI is below 50 continuing this bearish trend though we have a slight uptic as this week has been positive but week. For a good week and a good bullish sentiment, we need to end the week over $6900. That will be a strong point of resistance that will need a good amount of volume to break. If we do not break it, expect a decline.
The daily chart actually looked good though today were seeing some resistance. The 12 period moving average has been a strong daily resistance line for weeks now and today is no different. To break the $6900 weekly we need a close above this line for long term support. Right now it appears the volume may not be enough right now to do it, but we have a MACD cross happening and momentum getting better so there is a chance volume will spike. It needs to spike above the average for there to be sustained movement. Though since BTC is sideways you can try and play the channel for some short term gains. If we go back down from the current resistance, you can try and sell and see if there is a bounce off around $6100 and buy back in.
The 4 Hour chart is actually very bullish right now. We had a move above both moving averages and starting to see a correction. MACD is positive and this is an overall good sign as long as the 4 hour holds. If we hold on the smaller time frame, we have a better chance of breaking the $6700 and $6900 lines of resistance. As we see a decline right now, we need to see a bounce off the 12 period moving average. If this is maintained and volume increases, we may be in good shape. If we fail at these lines of support, then we hope for the bounce near $6100.
If we can not see a monthly close above 7200, we must find support around $6k. This is a strong area of support. This needs to hold or we can see a plummet to the 26 period moving average around $4374.
On the weekly chart, MACD is still very bearish with no crossovers in sight. RSI is below 50 continuing this bearish trend though we have a slight uptic as this week has been positive but week. For a good week and a good bullish sentiment, we need to end the week over $6900. That will be a strong point of resistance that will need a good amount of volume to break. If we do not break it, expect a decline.
The daily chart actually looked good though today were seeing some resistance. The 12 period moving average has been a strong daily resistance line for weeks now and today is no different. To break the $6900 weekly we need a close above this line for long term support. Right now it appears the volume may not be enough right now to do it, but we have a MACD cross happening and momentum getting better so there is a chance volume will spike. It needs to spike above the average for there to be sustained movement. Though since BTC is sideways you can try and play the channel for some short term gains. If we go back down from the current resistance, you can try and sell and see if there is a bounce off around $6100 and buy back in.
The 4 Hour chart is actually very bullish right now. We had a move above both moving averages and starting to see a correction. MACD is positive and this is an overall good sign as long as the 4 hour holds. If we hold on the smaller time frame, we have a better chance of breaking the $6700 and $6900 lines of resistance. As we see a decline right now, we need to see a bounce off the 12 period moving average. If this is maintained and volume increases, we may be in good shape. If we fail at these lines of support, then we hope for the bounce near $6100.