It's funny to how people start to be bullish and start buying into Bitcoin and altcoins as they see the recent rally.
Remember, when everyone around you is bullish, is mostly a bad sign.
Bitcoin has formed a reversal Doji pattern which is expect to bring at least a correction to $35000 where the daily 20 and 50 EMA's are located.
Bitcoin has seen 8 positive days in succession which gains have to see a proper correction.
As Bitcoin has failed to break above pivot at $41330, forming a new lower high at $40900 a deeper correction is expected.
4h time frame is extremely overbought without any proper correction in the process.
The daily trend is still a downtrend so remain cautious.
If Bitcoin manages to find support at $35000 area, the daily trend will change into an uptrend.
However a if the price breaks below these EMA levels, daily downtrend will continue and values below $30000 could easily occur again.
Good luck!
Remember, when everyone around you is bullish, is mostly a bad sign.
Bitcoin has formed a reversal Doji pattern which is expect to bring at least a correction to $35000 where the daily 20 and 50 EMA's are located.
Bitcoin has seen 8 positive days in succession which gains have to see a proper correction.
As Bitcoin has failed to break above pivot at $41330, forming a new lower high at $40900 a deeper correction is expected.
4h time frame is extremely overbought without any proper correction in the process.
The daily trend is still a downtrend so remain cautious.
If Bitcoin manages to find support at $35000 area, the daily trend will change into an uptrend.
However a if the price breaks below these EMA levels, daily downtrend will continue and values below $30000 could easily occur again.
Good luck!
Comment:
The formation has failed to deliver as the gains overcame the losses from that day and canceled the bearish candlestick formation.
