Bitcoin in Range: Can continue to be more bearish
Here is a simple trade setup showing a symmetrical triangle that is a neutral pattern. This means that price action in, bullish or bearish, either direction has a 50/50 probability. But in my view, it's not actually 50/50 but 60/40 maybe?
There are a few things that can be used to have 'educational guess' about what's more probable.
We know that "More than price touches the support/resistance, the weaker it gets". In this chart, we can find that BTC price has touched resistance and support lines multiple times and now, starting from May 29, 2021, BTCUSDT has started ranging on the Trend line support. Ranging of price near to the support or resistance results in a build-up. This shows that BTC is building upon the support, hence weakening it.
We can also see that 50-EMA on the 4H chart of BTCUSDT has been a very strong resistance and BTC has got strong rejections multiple times from 50-EMA. If BTC isn't able to break this strong resistance by June 6, 2021 (Apex), we see downward price action.
Bullish Targets for BTC according to this Technical Analysis are above $45000, about $53000 while bearish targets are below BTC's key support of $28000-$29000, i.e around $22000.
Also, if we zoom out, we can clearly see that Bitcoin is following a downtrend that can hint that BTC can continue its downward action.
What do you think about this technical analysis?
Comment.
Muneeb
There are a few things that can be used to have 'educational guess' about what's more probable.
We know that "More than price touches the support/resistance, the weaker it gets". In this chart, we can find that BTC price has touched resistance and support lines multiple times and now, starting from May 29, 2021, BTCUSDT has started ranging on the Trend line support. Ranging of price near to the support or resistance results in a build-up. This shows that BTC is building upon the support, hence weakening it.
We can also see that 50-EMA on the 4H chart of BTCUSDT has been a very strong resistance and BTC has got strong rejections multiple times from 50-EMA. If BTC isn't able to break this strong resistance by June 6, 2021 (Apex), we see downward price action.
Bullish Targets for BTC according to this Technical Analysis are above $45000, about $53000 while bearish targets are below BTC's key support of $28000-$29000, i.e around $22000.
Also, if we zoom out, we can clearly see that Bitcoin is following a downtrend that can hint that BTC can continue its downward action.
What do you think about this technical analysis?
Comment.
Muneeb
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