Bitcoin - Committed to the bearish narrative
Updated
Over the past few days, Bitcoin has continued to be choppy, oscillating mainly between 19 000 USD and 20 000 USD. Currently, it trades near the 19 200 USD price tag. We believe the recent volatile movements reflect rising anxiety among market participants. Additionally, lower troughs and lower peaks, constituted since 15th August 2022, suggest the downtrend continuation.
Furthermore, fundamental factors weighing on risk appetite will continue to persist throughout 2022 and 2023, putting aside the bullish potential of the cryptocurrency market. In addition to fundamental factors, technical factors also support the bearish case for BTCUSD.
Therefore, we have no reason to change our bearish bias and stick to our price targets at 17 500 USD and 15 000 USD. We expect our price targets to be reached within Q4 2022.
Illustration 1.01
The picture above shows the daily chart of BTCUSD. Again, we pay close attention to the sloping resistance; the breakout above it will be bullish, while the failure of the price to break above it will be bearish.
Technical analysis - daily time frame
MACD and RSI are neutral. Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Illustration 1.02
Illustration 1.02 displays the daily chart of BTCUSD and simple support/resistance levels.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Furthermore, fundamental factors weighing on risk appetite will continue to persist throughout 2022 and 2023, putting aside the bullish potential of the cryptocurrency market. In addition to fundamental factors, technical factors also support the bearish case for BTCUSD.
Therefore, we have no reason to change our bearish bias and stick to our price targets at 17 500 USD and 15 000 USD. We expect our price targets to be reached within Q4 2022.
Illustration 1.01
The picture above shows the daily chart of BTCUSD. Again, we pay close attention to the sloping resistance; the breakout above it will be bullish, while the failure of the price to break above it will be bearish.
Technical analysis - daily time frame
MACD and RSI are neutral. Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Illustration 1.02
Illustration 1.02 displays the daily chart of BTCUSD and simple support/resistance levels.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Trade active
The price continues to be choppy while turning slightly bullish for the short-term, potentially foreshadowing a temporary bear market rally. That would align with what we stated about stock market indices for which we expected many people to fish for the double bottom, subsequently dragging prices higher. We will watch the price action and volume levels closely, and update our thoughts soon.Trade active
We watch signs of exhaustion in today's price action, hinting at the potential failure to continue higher. Note
A breakout above the resistance will be bullish, while the failure to break above the resistance will be bearish.
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