Until bulls invalidate the macro downtrend, we remain trapped under fairly significant horizontal and diagonal resistance levels on higher timeframes.
Bulls will need to close over that November resistance and $40k to definitively flip sentiment. From where we are at the time of posting, that would take a 3.5% rally to escape the macro downtrend.
Failed rallies against major resistance levels typically lead to some large red candles and we might swing down to mid or lower $30k range as noted in my last post.
In a positive sign for bulls- we are respecting the 12h 20 EMA that servers as a strong indicator of short to mid range sentiment in the market. But its a question now whether that sentiment is strong enough to rally through this confluence of resistance overhead.
Bulls will need to close over that November resistance and $40k to definitively flip sentiment. From where we are at the time of posting, that would take a 3.5% rally to escape the macro downtrend.
Failed rallies against major resistance levels typically lead to some large red candles and we might swing down to mid or lower $30k range as noted in my last post.
In a positive sign for bulls- we are respecting the 12h 20 EMA that servers as a strong indicator of short to mid range sentiment in the market. But its a question now whether that sentiment is strong enough to rally through this confluence of resistance overhead.
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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.