BTC Bear Attack RAWR! 1:41 pm America utc-5
Updated
All indicators are pointing to bearish price action.
Overall things are looking bearish, and there is a chance of a short term reversal.
- We have a Red 2 trading below a red 1 on the daily chart. The probability of bearish price action in the next few days are high.
- We tested the resistant area of confluence, and failed. After the failure you can see the RSI nose dived, and It shot us down $500 within hours.
- The current RSI indicates BTC is being oversold
- BTC price got pushed down to the supportive area of confluence which it broke through effortlessly. It spent about 3 hours in the supportive area of confluence.
- Bearish crossover on the MACD in the day, 4hr, and 1hr chart.
- Death cross occurred
- On the 4hr chart the price might complete a TD countdown. If it completes the chances of a short term reversal is high. So, there is some hope short term.
- .786 Fib is at $7520 hopefully this is a strong support line.
- There is a historic support line at $7220.
- Shorts are piling up
Overall things are looking bearish, and there is a chance of a short term reversal.
Note
It looks like the supportive area of confluence is holding up :)Note
The area of confluence is holding up!
Looking at the 4hr chart the OBV is starting to flatten out. This means the probability of consolidation is high.
The theory behind the OBV indicator is when there is a sharp movement in the OBV momentum indicator the price will soon follow. Essentially the volume and price is directly correlated.
EX: Increase in the OBV indicates the price will increase.
As of now the OBV is flattening out on the 4hr chart which indicates consolidation in the short term.
Note
The 10 MA is acting like the resistance line during this down trend.
Looking at the 4hr chart, the 10 MA has entered the area of the confluence which is going to make this area even harder to break through.
As you can see the OBV has spiked which is a good thing, however, on the 3HR chart it's flattening out, on the 2HR chart it's sloped up, and on the 1HR chart it's flattening out. It is safe to say the reason why the OBV is sloping up on the 4HR chart is because of the 2hr chart which is an outlier in the set.
With this said, although the OBV is sloping up on the 4HR chart the chances of consolidation is higher than a price spike. A small increase in price is feasible, however it does not look significant.
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