BTC Attempting Relief Rally, Remains in A Major Downtrend!
Bitcoin is currently holding above the 50 week moving average (in orange) and has found support on the bottom of a falling wedge that it has been forming since the 2019 high near 13,800. Looking at the MACD, you can see that its forming a bullish divergence, as it prints a higher low while price has formed a lower low. This shows that the sell pressure is weakening, and that we may be in the early stages of a short relief rally. The obvious upside target for the relief rally would be the top trendline resistance on the falling wedge pattern.
It's important for everyone to understand that even if BTC and the alts enter a relief rally here, the likelihood is that it wont be enough to change the prevailing downtrend. BTC could rally all thr way to 10,000, and it would still be a lower high than the previous high, which would mean that the bears are still in control. So be careful not to let the market volatility trick you into buying a recovery that isn't proven. Remember; the trend is your friend! Right now, the trend is clearly down. BTC has a lot of work to do, to even begin to change that fact.
On the downside, a rollover back below the 50 week MA (in orange) would be extremely bearish, especially in the face of a early developing relief rally. In my view, we are likely to see some short-term upside here, but I still believe there is much more downside in the longer-term picture.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
It's important for everyone to understand that even if BTC and the alts enter a relief rally here, the likelihood is that it wont be enough to change the prevailing downtrend. BTC could rally all thr way to 10,000, and it would still be a lower high than the previous high, which would mean that the bears are still in control. So be careful not to let the market volatility trick you into buying a recovery that isn't proven. Remember; the trend is your friend! Right now, the trend is clearly down. BTC has a lot of work to do, to even begin to change that fact.
On the downside, a rollover back below the 50 week MA (in orange) would be extremely bearish, especially in the face of a early developing relief rally. In my view, we are likely to see some short-term upside here, but I still believe there is much more downside in the longer-term picture.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-