Bitcoin has crossed the descending trendline on its price and also on the RSI (4 hours chart). It now stays inside the bollinger bands, avoiding to touch again the lower bollinger band.
As on chain analysis confirms that spot buyers are liking this dip, we are probably witnessing a double bottom in formation.
On the 4 hours chart, there is a divergence between the price and the RSI.
The price is doing lower lows but the RSI is doing higher lows.
In every new low, the price penetrates less and less the lower bollinger band.
Bitcoin correction of around 18% is probably over.
The previous one had a similar setting:
- about the same percentage
- huge spike of volume at the bottom
- spent a few minute at the bottom and went back up quickly, giving the 1h candle a hammer shape
- touched the latest high and the trendline
On the monthly chart, bitcoin price formed a giant cup & handle: the break out was this month.
Target is $25,000 (equal to the height of the cup) in 8 months (half the duration of the cup).
Seen the current price action and the fundamentals, we should expect $25,000 to be reach sooner than that.
See the interviews of Micro Strategy CEO, Michael Saylor, for the...
This pattern looks like an Island Reversal.
The trend should be down just before the island for the pattern to be flawless.
This is not the case, but it gives the feeling that investors are letting dark views behind them for now.
Need to be confirmed by crossing the neckline with volume .
The volume is lowering on each rally, indicating an exhaustion of demand. The bulls are afraid.
Target of 4800 by reporting the height of the middle top under the neckline.
4800 is also a support, so I will be buying there.
Short term bearish on BTCUSD
On the 4 hours chart, the price failed to tag the upperband and have just tagged the lowerband, which indicates weakness.
A lower high and a small triangle pattern have formed.
Reporting the height of the triangle, a target of -20% can be deducted if the price break down.
Possible supports on the way down: 5450, 5050, 4800.
Bitcoin is currently at electricity cost (blue line). The white line represents electricity cost + operating costs.
So the miners are not selling their bitcoin until BTC go above the white line.
The negative premium has never been that huge on Bitmex, meaning that everybody is short.
That is a recipe for short squeeze.
Is the panic sell over? I am not sure but I...
Head and shoulder pattern breaking out the neckline the 8th of March
At 7750$, we are at support. Will probably see a technical rally but chances are the sell off will then go to the 6100 / 6800 zone of support.
Then with all the bullish events (legal ground for trading crypto in India, South Korea) and the halving, expecting a bull...
A bullish divergence on BTCUSD 4H is visible on RSI and MFL indicators. This is not enough to take a long position by itself but increases the chance of a rally and should discourage you from taking a short position.