BitcoinLong
Bitcoin — Short-Term Analysis
Bitcoin — Short-Term Analysis
Unfortunately, yesterday's discussed falling wedge pattern didn't play out. Once the U.S. markets opened, bearishness returned and took the (crypto) market for another ride downhill.
The question is whether we will go lower or if this was just a quick correction.
When looking at the chart, we can find pieces of evidence for both options. Here are the aspects that second a continuing downtrend:
* Bitcoin's price closed below its sideways resistance on the 4H chart.
* The VMA signals a downtrend across all timeframes.
* The overall market is down (e.g., SPX -2%) and is expected to continue to fall.
On the other side, we have to put the latest dip into context:
* The drop was (again) mainly driven by a squeeze of leveraged long trades.
* Accordingly, there was no sell-off, but leveraged positions got flushed.
* The drop wasn't driven by a considerable volume.
* So far, we have no daily close below the channel's support.
* The drop brought the open interest rate back to a healthy level!
Putting it all together, I don't think the price will go much lower at this point. Indeed, I could be wrong with this prediction, but based on the facts I just laid out, I consider a reversal back into the sideways channel to be more likely short-term.
Unfortunately, yesterday's discussed falling wedge pattern didn't play out. Once the U.S. markets opened, bearishness returned and took the (crypto) market for another ride downhill.
The question is whether we will go lower or if this was just a quick correction.
When looking at the chart, we can find pieces of evidence for both options. Here are the aspects that second a continuing downtrend:
* Bitcoin's price closed below its sideways resistance on the 4H chart.
* The VMA signals a downtrend across all timeframes.
* The overall market is down (e.g., SPX -2%) and is expected to continue to fall.
On the other side, we have to put the latest dip into context:
* The drop was (again) mainly driven by a squeeze of leveraged long trades.
* Accordingly, there was no sell-off, but leveraged positions got flushed.
* The drop wasn't driven by a considerable volume.
* So far, we have no daily close below the channel's support.
* The drop brought the open interest rate back to a healthy level!
Putting it all together, I don't think the price will go much lower at this point. Indeed, I could be wrong with this prediction, but based on the facts I just laid out, I consider a reversal back into the sideways channel to be more likely short-term.
I'm Ben. Crypto lover, trader, and coder.
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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.
I'm Ben. Crypto lover, trader, and coder.
Join my free newsletter for insights and the hottest trade setups every weekday!
newsletter.bencrypto23.com
🔥 For exclusive content: newsletter.bencrypto23.com/exclusive
Join my free newsletter for insights and the hottest trade setups every weekday!
newsletter.bencrypto23.com
🔥 For exclusive content: newsletter.bencrypto23.com/exclusive
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.