Bitcoin could be done with a fakeout rally
Updated
Yesterday, Bitcoin dropped below an important support at $26,800. Currently, it trades slightly above this level. As a result, we will pay attention to Bitcoin’s ability to stay above $26,800; if it fails, it will be negative. Besides that, we will also watch RSI, Stochastic, and MACD on a daily time frame, all of which started to flatten recently and now point to the downside; furthermore, MACD is approaching the midpoint. Overall, technicals are turning increasingly bearish again, suggesting that the recent rally might have been only a fakeout after all.
Illustration 1.01
Illustration 1.01 displays the daily chart of MACD as it approaches the midpoint. If MACD breaks below zero, it will be strongly bearish for Bitcoin.
Illustration 1.02
The picture above shows the daily chart of Bitcoin and two simple moving averages. The yellow arrow indicates a bearish breakout from the upward-sloping channel.
Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Slightly bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Illustration 1.01
Illustration 1.01 displays the daily chart of MACD as it approaches the midpoint. If MACD breaks below zero, it will be strongly bearish for Bitcoin.
Illustration 1.02
The picture above shows the daily chart of Bitcoin and two simple moving averages. The yellow arrow indicates a bearish breakout from the upward-sloping channel.
Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Slightly bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Note
The number of Bitcoin addresses with balances of 1,000 BTC or more began to trend down in the past three days, which is particularly bearish.
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