Bitcoin: Bullish Vs Bearish Model

Let's look at the daily chart of Bitcoin and try to understand possible market movements in the next couple of days/weeks.

1. The price bounced from the local support area between 53 000$ support based on the previous swing high and 50 000$ round number level. RSI and MACd confirmed the price reversal. We got the 1st bullish signal based on the reversal and trade opportunities in the daily and hourly charts.
2. Now we have the daily low, which is the bear's key point, and workable support! The bears have to update the low in order to confirm their strength.
3. The price broke the local downtrend line, and it gave the 2nd bullish signal and new trade opportunities. It was the bullish signal in the direction of the main uptrend.
4. The price reached MAs, and we could see attempts to break them. But the bulls failed and supported by the bearish news, the price bounced from MAs.
5. The price moved back to the hourly support level at 55 500$. The price action at this support will be able to push the market upward or we will see a new attempt to reach the main uptrend line and 50 000$. Watch for the price action using the 1h-4h time frames.

So, based on the points above, we can build bullish and bearish models.

The bullish model is:
1. We need the price reversal from 55 500$ and the downtrend line with the further breakout above MAs. It will show the strength of the bulls and give a strong buying opportunity. We will see the bullish sentiment. The nearest targets will be 65 000$ and the ATH.
2. An alternative is a reversal from 53 000$ support where we will get a double bottom. It will be a strong trend reversal signal in the direction of the main bullish trend. The reversal from 53 000$ will give a new buying opportunity, and a breakout above MAs will support the upward movement.

The bearish model is:
The price has to say below MAs, break 55 500$ and try to update the daily low. If the bears can do this, the nearest targets for them will be the main uptrend line and 50 000$ support. A breakout below 50 000$ will be able to break the main uptrend and become the 1st sign of the bearish long-term trend. Of course, we will be able to rely on MA200, which will be able to stop the bears and reverse the downward movement. But it won't change the bearish sentiment in the whole crypto market. We will have to be ready to see the bearish period, something like it was in 2018.


And what do you think about the further market movement? Share your thoughts and trading idea in the comments. Also, I will be grateful if you support my work here by your LIKEs. Thank you!

Comment:

The bearish model was activated!