BTC/USD Daily TA Neutral Bearish
BTC/USD Daily neutral with a bearish bias. *Whether or not it was the doing of a few whales or institutions liquidating positions, this week confirms that equities and cryptos are currently decoupled and uncorrelated in terms of their PA (beta coefficient as well). That said, going forward it's reasonable to expect cryptos to be the most risk-on investment available and therefore subject to the harshest downside. The official reduction of the Federal Reserve balance sheet will commence on June 1st and gradually increase in terms of reduction size throughout the rest of the year; this is expected to have a bearish impact on risk-on markets.* Recommended ratio: 40% BTC, 60% cash. Price is currently testing the 50/50 uptrend line from March 2017, in addition to the adjacent side of the Descending Triangle, for what is now nineteen consecutive sessions; considering that we are reaching the end of this formation it is reasonable to expect an impending breakout or breakdown in the next couple of sessions. Volume remains moderate (low) and if it can't close today in the green then it would be four consecutive sessions of seller dominance leading up to the breakout or breakdown; this scenario would give bias to it being a breakdown. Parabolic SAR flips bearish at $26745, this is mildly bearish. RSI is currently trending up slightly at 37.64, the next resistance is at 42.41 and support at 25.60. Stochastic remains bearish and is currently trending down at 72 as it tests 78 support. MACD is currently trending up slightly at -1882, the next resistance is at -1435; the fact that MACD is still trending up indicates that bulls are not yet ready to give 30k support up quite yet. ADX continues to trend sideways at 44 for four consecutive sessions now as Price is also trading relatively flat. If Price is able to breakout to the upside and reclaim $30507 as support, the next likely target is a test of $36258 minor resistance. However, if Price breaks down here, it will likely fall (fairly violently) to $24180 minor support. Mental Stop Loss: (two consecutive closes above) $30507.
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