Don't Bet On Bitcoin Price Recovery Just Yet... Here's Why...
TECHNICALS
As we can see price is in a long-term trendline triangle, plus the yellow box indicates a range inside of a Weekly Candle.
A break below the yellow box puts us below the long-term blue trendline. Next major support appears at £5650.
However, traders will expect (and prey for) the blue trendline to hold.
On the 3-day time-frame we can see very strong downwards momentum and today's price increase may simply be a very small relief rally within the overall downtrend towards that blue support level, around $7400 to $7500 over the coming week.
Technically, if the current 3D candle does not recover towards the top of the previous red candle then momentum is still down.
Support at the blue trendline may see price consolidate along that trendline into the halving, taking us into May/June before a break above the long-term resistance trendline (thick red line).
MACD on the 3D is decidedly down. RSI is in a triangle along with price.
On a long-term perspective we remain NEUTRAL until a break above or below the long-term triangle. Short-term we do expect to touch the blue trendline for consolidation.
SIGNALS
Bright green circles indicate where one of the Sparkster Trading Strategies gave BUY and SELL signals over the past year.
As we can see price is in a long-term trendline triangle, plus the yellow box indicates a range inside of a Weekly Candle.
A break below the yellow box puts us below the long-term blue trendline. Next major support appears at £5650.
However, traders will expect (and prey for) the blue trendline to hold.
On the 3-day time-frame we can see very strong downwards momentum and today's price increase may simply be a very small relief rally within the overall downtrend towards that blue support level, around $7400 to $7500 over the coming week.
Technically, if the current 3D candle does not recover towards the top of the previous red candle then momentum is still down.
Support at the blue trendline may see price consolidate along that trendline into the halving, taking us into May/June before a break above the long-term resistance trendline (thick red line).
MACD on the 3D is decidedly down. RSI is in a triangle along with price.
On a long-term perspective we remain NEUTRAL until a break above or below the long-term triangle. Short-term we do expect to touch the blue trendline for consolidation.
SIGNALS
Bright green circles indicate where one of the Sparkster Trading Strategies gave BUY and SELL signals over the past year.
- 22nd March 2019 BUY @ $3980. SELL @ $7472 on 23rd October 2019. A 92.4% gain.
- 3rd Feb 2020 @ $9280. Protective SELL triggered @$8067 on 8 March. An 8.84% loss. This drop was unexpected given the positive trend in the chart.
- This strategy was developed for ETHUSD but has performed remarkably well on BTC (1-day time-frame) with a 9.08 expected Return On Investment, Win Rate of 42.86% and Gains Ratio of 21.18.
Price is currently between 2 levels. One above at ~$5650. One below at ~$3200.
As of this comment, RSI has dropped to the long-term triangle support level which may indicate a trending oversold territory.
On this 3-day time-frame we'll be watching how the current candle closes. If near to the previous candle low then we may start to climb.
If the current candle closes with a thick body then it indicates further downside could happen next week.
A drop to that $3000 level would be jaw dropping, but certainly within reach of the current market structure and price action.