Double touch the weekly support at 5846. Had some relief rally but rejected the strong resistance area which use to be a key support level at 6800 - 6643.
RSI indicator showing a hidden bearish divergence on the daily indicating more bearish momentum + 50 RSI area acting as resistance. MACD is also turning so
Lower TF Bear flag is forming but finding support on the cloud edge. A break of the cloud would fuel more downside (6287).
Break below 6277 will indicate more bearish momentum next key support area would be 5846. If 5846 do not hold (support tested multiple times = weak), we can see more panic towards 5k-ish region.
Bullish case:
Support at 6287 region and we print a higher low indicating and upward movement. However meed a break above 6650 200 EMA on 4hr to show more bullish signals.
A lower high printed in this area would add to an inverse head & shoulder showing more upwards momentum on a break above 6889.
or
Touch the 5846 for the 3rd time as support and trend higher.
As for fundamentals, with each new ICO coming out it adds selling pressure to the cryptocurrency ecosystem. Companies cashing out to FIAT to either fund their project or buy a lambo. Catalyst for the next bull run would require a huge influx of capital the highest probability scenario would be approval of BTC ETF.
Happy Hunting,
Charles Chua
Quote of the day: Trend is your friend
RSI indicator showing a hidden bearish divergence on the daily indicating more bearish momentum + 50 RSI area acting as resistance. MACD is also turning so
Lower TF Bear flag is forming but finding support on the cloud edge. A break of the cloud would fuel more downside (6287).
Break below 6277 will indicate more bearish momentum next key support area would be 5846. If 5846 do not hold (support tested multiple times = weak), we can see more panic towards 5k-ish region.
Bullish case:
Support at 6287 region and we print a higher low indicating and upward movement. However meed a break above 6650 200 EMA on 4hr to show more bullish signals.
A lower high printed in this area would add to an inverse head & shoulder showing more upwards momentum on a break above 6889.
or
Touch the 5846 for the 3rd time as support and trend higher.
As for fundamentals, with each new ICO coming out it adds selling pressure to the cryptocurrency ecosystem. Companies cashing out to FIAT to either fund their project or buy a lambo. Catalyst for the next bull run would require a huge influx of capital the highest probability scenario would be approval of BTC ETF.
Happy Hunting,
Charles Chua
Quote of the day: Trend is your friend
Comment:
inverse head & shoulder played out
3D support held price for US closing with a nice short squeeze.
Trend is still downwards