Bitcoin
Short

Why BITCOIN is trapped???

Stuck between the 20 EMA (purple) and 50 EMA (yellow) BTCUSD finds itself trapped within a significant support and resistance range (shaded area) when using the daily timeframe. As we can see, we've now also established a well defined downtrend using parallel channels, with its mid-point acting as another resistance point.

So what can we expect BTCUSD to do here??? For starters, if BTCUSD is to break our trap, it MUST re-claim the mid-point as support. If its successful, it should then try to rally above the 20 EMA and possibly try to break out of our current downtrend.

If the bears win, we may see BTCUSD fall back and retest our 50 EMA as support which coincides with the bottom of our shaded area. This area has already been tested a few times and has held as good support, but the more we test support the weaker it becomes.

As far as RSI and MACD, we can see RSI tried to rally above 50 line but was rejected there. MACD continues to fall to the 0 line and histogram is showing strong bear control.

Check out our previous analysis to see how we got BTC got to this point, and how you can use technical analysis to look for clues on potential incoming drops.



Please remember these are just ideas and not trading advise.
BTCBTCUSDChart PatternsCryptocurrencyTechnical IndicatorsTechnical AnalysisTrend Analysis

Telegram: t.me/BlizzView 🔥🔥🔥
Also on:

Related publications

Disclaimer