Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Description
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Observations
Bearish Flag : Price is currently in Resistance of it.
Previous Resistance : Resistance Zone ($8775-$8355) has been a Immediate Resistance Previously
Trendlines a) Yellow Trendline : Price action is following the previous trendline drawn from $13920 (All Time High in 2019) b) Red Trendling : This trendline is showing strong signs of Reversal from $8800. c) Green Trendline : This trendline is the one where the current price action is moving around.
0. 5-0 . 618 Retracement : When Overall Trend is Bearish , All Pullbacks are made from 0. 5-0 .618 Retracements. These Retracements have been marked in the chart and are very crucial for future update. a) Retracement 1 : 0.5($8177) - 0.618($8600) Current Reversal Zone. b) Retracement 2 : 0.5 ($9375) - 0.618 ($10075) , If $9100 is break above then this is our Potential Reversal Zone
Bearish Butterfly Pattern : It's Potential Reversal Zone is also coinciding with our Resitance Zone which increases the vaildity of a Bearish Trend.
Technical Indicators a) RSI - Overbought b) RSI Stochastic - Overbought c) MACD - Cross is about to be printed. Hints Bearish Trend d)Momentum - Loosening of Momentum has started. e) ADI - +DI crossing ADX downward. ADX and -DI are rising.
Conclusions Price action seems to settle down well in Current Resistance Zones. In Ideal terms, Bitcoin is going to test out $8700 after which Bearish Trend Prevails. If the bullish trend is so strong that we break $9100 dramatically, We are going to test out our 2nd Resistance Zone ($9375-$10075)
Wild Thought From Last 5 Years, In the month of January, Bitcoin price gains 20-25% and DUMPS back to 50%. Wonder, If this situation is about to be executed in Couple of Days ?
Disclaimer None of my any analysis should be considered as an Investment Plan/Financial Advice. Cryptocurrency is a Volatile market with High Risks.