Obviously everyone strapped in for a ride yesterday as an unexpected Elon tweet and weak Bitcoin price action converged on a glorious dump. The correction wasn't large in terms of depth (yet) but certainly memorable.
I am still bullish on Bitcoin in the long term, and probably mid term, but I don't think we escaped this correction yet, and the possibily of significant drops are still possibly and perhaps likely as we paint this descending triangle, which is a bearish pattern.
If we drop below the 20/21W SMA/EMAs, which are historically the bottom support for the bull cycle, we don't have much support to fall into before the lower 40k range. That doesn't mean that we can't find support, but my confidence is high that if we do fall below ~48k that the potential for deeper corrections are there.
Data Points:
I am still bullish on Bitcoin in the long term, and probably mid term, but I don't think we escaped this correction yet, and the possibily of significant drops are still possibly and perhaps likely as we paint this descending triangle, which is a bearish pattern.
If we drop below the 20/21W SMA/EMAs, which are historically the bottom support for the bull cycle, we don't have much support to fall into before the lower 40k range. That doesn't mean that we can't find support, but my confidence is high that if we do fall below ~48k that the potential for deeper corrections are there.
Data Points:
- 4h Stoch RSI is overbought and crossed bearish recently
- 4h MACD is ranging in bearish territory and appears it may soon cross bearish
Note
Question of the day- if you saw Elon's tweet you know why we are all wondering the answer to this---- which cryptocurrencies use <1% of the energy it takes to mine Bitcoin?Possible Answers-
*Tezos
*Doge
*XRP
*Algo
*Nano
*XLM
Note
It appears we did break bearish (weakly) from the descending triangle, but since formed a descending wedge pattern and broke above former resistance. If we can close above that resistance we'll likely continue to paint either a cointuation or bullish pattern to see additional growth in the coming days. Failing to do so could see us revisit lower supports and the possibility of the larger drop below 48k.
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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.