After $1500 Spike, Is Local Bottom Confirmed?

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Bit­coin has been on a slow decline for the past cou­ple of weeks. The price has been reject­ed from the 100-day and 50-day mov­ing aver­ages a cou­ple of times and dropped to the $37K level.

Technical Analysis

By: Edris

The Daily Chart

Bit­coin is cur­rent­ly rebound­ing from the men­tioned lev­el and could ral­ly towards the $40K zone and retest the 100-day mov­ing average.

If the price breaks these dynam­ic and sta­t­ic resis­tance lev­els, the 50-day mov­ing aver­age and the $43K lev­el would be the next sig­nif­i­cant obsta­cles before the con­sid­er­able 200-day mov­ing aver­age, which would be the key indi­ca­tor for deter­min­ing a bull­ish or bear­ish trend in the mid-term.

On the oth­er hand, if the $37K is bro­ken to the down­side, the price could crash to the $30K demand zone in the short term.

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Source: Trad­ingView

The 4‑Hour Chart

On the 4‑hour time­frame, the price has been form­ing a falling wedge over the past cou­ple of weeks after get­ting reject­ed from the $43K area.

How­ev­er, a bull­ish break­out seems to be hap­pen­ing now, as the price is push­ing above the high­er trend­line of the falling wedge. This pat­tern is con­sid­ered a bull­ish rever­sal pat­tern, and a valid break­out and retest could lead to a ral­ly towards the $40K and $43K resis­tance levels.

Con­verse­ly, if the price drops back into the pat­tern, this break­out would be con­sid­ered a fake one, sell­ing pres­sure could return, and a break­down of the large bear­ish flag would become more prob­a­ble. In this case, the price could plunge below the pre­vi­ous $33K low and retest the $30-$31K demand zone, a lev­el that could poten­tial­ly hold the price and ini­ti­ate a bull­ish trend for the mid-term.

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Source: Trad­ingView

Onchain Analysis

Onchain By Shayan

The 30-day mov­ing aver­age of the Tak­er Buy/Sell Ratio mea­sure and Bitcoin’s price are shown in this chart. Val­ues over 1 sug­gest that more buy­ers are pre­pared to pay a high­er price for BTC, indi­cat­ing that buy­ing pres­sure is more robust than sell­ing pres­sure. There is a sub­stan­tial like­li­hood of a price increase, indi­cat­ing bull­ish sen­ti­ment. On the oth­er hand, val­ues below one sug­gest that more sell­ers are eager to sell coins for a low­er price, mean­ing that sell pres­sure is more robust.

When the mov­ing aver­age cross­es into the red zone, it usu­al­ly implies intense sell­ing pres­sure and is a bear­ish indi­ca­tion. It indi­cates high buy­ing pres­sure and is a bull­ish sign when it reach­es the green area. After get­ting the red zone, the MA is now recov­er­ing. This sug­gests that buy­ers return to the mar­ket, which might sig­nal anoth­er bull­ish rise.

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Source: Cryp­to­Quant
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Dis­claimer: Infor­ma­tion found on Cryp­toPota­to is those of writ­ers quot­ed. It does not rep­re­sent the opin­ions of Cryp­toPota­to on whether to buy, sell, or hold any invest­ments. You are advised to con­duct your own research before mak­ing any invest­ment deci­sions. Use pro­vid­ed infor­ma­tion at your own risk. See Dis­claimer for more information.

Cryp­tocur­ren­cy charts by TradingView.



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