Bitcoin is in a new downtrend channel (pink dots) on the four hour chart. However, a slight bullish divergence has been building, and there has also been a bullish MACD crossover. Additionally, price has popped up above the 10 EMA (in orange,) which has acted as resistance for the entire selloff. So, if BTC can hold the 10 EMA as support, and break out above the pink dotted downtrend channel, we would likely see a rally back to the $4492 level. Despite the underlying decrease in sell-side momentum, and the increase in buy volume on the chart, it's probably more likely that we will see the downtrend channel hold strong, with a continuation in selling.
For now, we have two immediate indicators that we can monitor, to understand the forward direction. A break above the pink dotted channel sends us to $4492 (possible, but less likely). A break back below the 10 EMA, and a hold inside of the channel, will likely send us sub $3500 (more likely.) Monitor those indicators, and good luck trading.
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-
For now, we have two immediate indicators that we can monitor, to understand the forward direction. A break above the pink dotted channel sends us to $4492 (possible, but less likely). A break back below the 10 EMA, and a hold inside of the channel, will likely send us sub $3500 (more likely.) Monitor those indicators, and good luck trading.
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-
Note
Price is continuing to move as anticipated, through the downtrend channel. Note
BTC has now broken out above the downtrend channel, and has held the bullish divergence's uptrend on the MACD. Resistance exists at $4233. If we get above there, price will retest $4492.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.