On lower timeframes Bitcoin broke through its mid-range sentiment test with the 12h 20 EMA. Usually a close over that precedes larger rallies, but a failure to hold this level will see another swing to the downside for more liquidity and consolidation before trying again. Considering the $45.5k confluence of resistance overhead, I am higher confidence of a short term rejection from that level.
If we repeat patterns from the past year, we will continue to ride the resistance (red diagonal) down before a potential breakout; this is potentially a few days, maybe less. We are seeing strong outflows in this range totaling 1.25% of Bitcoin's total supply on exchanges in the past 24 hours, and nearly 3% since late December.
Invalidation if we drop lower than $39k at any point. Or if we can close over $45.5k it will be a surprising show of strength from bulls and hint at a larger rally.
If we repeat patterns from the past year, we will continue to ride the resistance (red diagonal) down before a potential breakout; this is potentially a few days, maybe less. We are seeing strong outflows in this range totaling 1.25% of Bitcoin's total supply on exchanges in the past 24 hours, and nearly 3% since late December.
Invalidation if we drop lower than $39k at any point. Or if we can close over $45.5k it will be a surprising show of strength from bulls and hint at a larger rally.
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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.