The current situation:
1. Price action had previously broken out of the falling wedge at about 4.3 USD with the measured target to be about 7 USD. After breaking out, the price action was rejected at the 6HR 21 moving average at about 5.4 USD. It has found support back at the 0.786 FIB level at about 4.3 USD.
There is also a POSSIBLE head and shoulders pattern on the 1HR chart. If the next high does not close above 4.90 USD, that could make the right shoulder and spell bearish action in the short term.
BTC dominance is also trending up, which can signal that altcoins can go lower. However, UNI was possibly one of the few, if not the only altcoin that has made a gain today. But it is still something to be careful of.
2. There was bearish divergence on the 1HR chart preceding the rejection at 5.4 USD and now RSI is in neutral territory on all available timeframes, so price action can go both ways.
The bullish case:
1. Price action needs a solid close above the 6HR 21MA, to make a convincing case it can go higher. The next resistance level above that would be the 0.5 Fib level at about 6 USD.
The bearish case:
1. A close below the 0.786 Fib level would be bad signal for the bulls and can indicate more downside to come as this breakout would not be considered successful.
*Let me know in the comment section if you agree or disagree, would love to hear your ideas too.
*These are purely my speculations and not financial advice. You should always do your own due diligence before trading or investing.
1. Price action had previously broken out of the falling wedge at about 4.3 USD with the measured target to be about 7 USD. After breaking out, the price action was rejected at the 6HR 21 moving average at about 5.4 USD. It has found support back at the 0.786 FIB level at about 4.3 USD.
There is also a POSSIBLE head and shoulders pattern on the 1HR chart. If the next high does not close above 4.90 USD, that could make the right shoulder and spell bearish action in the short term.
BTC dominance is also trending up, which can signal that altcoins can go lower. However, UNI was possibly one of the few, if not the only altcoin that has made a gain today. But it is still something to be careful of.
2. There was bearish divergence on the 1HR chart preceding the rejection at 5.4 USD and now RSI is in neutral territory on all available timeframes, so price action can go both ways.
The bullish case:
1. Price action needs a solid close above the 6HR 21MA, to make a convincing case it can go higher. The next resistance level above that would be the 0.5 Fib level at about 6 USD.
The bearish case:
1. A close below the 0.786 Fib level would be bad signal for the bulls and can indicate more downside to come as this breakout would not be considered successful.
*Let me know in the comment section if you agree or disagree, would love to hear your ideas too.
*These are purely my speculations and not financial advice. You should always do your own due diligence before trading or investing.