Will Bitcoin Really Collapse Or Just A Bull Flag?

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
Patience is key we are used to saying... is it not?

Will Bitcoin collapse?
Is it collapsing already?
Doomsday is here?

Bitcoin ( XBTUSD ) broke below EMA10 switching its bullish potentially from bullish to bearish on this timeframe (4H)/short-term.

Note: On the daily timeframe Bitcoin is still safely trading above EMA10 which is sitting at $8835. (Meaning that the bullish potential remains longer-term)

With that said, this retrace is shaping up but is still as normal and as classic as it comes.
Prices for Bitcoin tend to make their move on or after mid-week/Wednesday+...

  • So Bitcoin ( XBTUSD ) retraced and almost reached the 0.5 Fib. retracement support from the last bullish wave.
  • The 0.382 Fib retracement support was sitting at $9330 which is now resistance because Bitcoin's price is below it.
  • Depending on how the next few candles develop, Bitcoin can move up after touching EMA50 or can retrace further to reach the 0.618 level, which is $8555.5 on this chart.
  • The blue area is the consolidation zone and can be activated if Bitcoin decides to consolidate sideways.
  • Trading volume is really low... so the bears are lacking strength. If the volume does not show up for the bears, no follow-up, then expect a bounce and a move up (curved green arrow).
  • If the bears do coming in, Bitcoin will test the lower support levels (red arrows).

Please allow time for this chart to develop... Patience is key.

Previous analysis:

Thanks a lot for reading.


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