Bitcoin Time to be Cautious with Bearish Signs Showing
Updated
Hi Guys! This is a Technical Analysis on Bitcoin (BTC) on the 3 Day Timeframe.
We've attempted since April 2023 to try and break ABOVE the Resistance Trend Line
From End of June to Mid July, we attempted to Re-test the Resistance trendline for couple weeks BUT Failed with a REJECTION.
Which brought Price Action to test SUPPORT on the 21 EMA (Purple line), before finally breaking through the 21 EMA and 50 SMA (Green line) with an ENGULFING BEARISH CANDLE.
Bringing us below the 0.786 FIB level.
But pay attention to the Volume, we initially have a spike in VOLUME during the break down but there has not yet been signs of follow through so wtch closely.
2 Major patterns have shown up that makes me CAUTIOUS with BTC atleast for the short term.
If they play out could bring BTC to test the 0.618 FIB level @ $24200
***1st is the fast approaching DEATH CROSS, where the 21 EMA crosses below the 50 SMA.
If you look left ( on your own time) as i have not zoomed out on the chart.
There are MIXED scenarios where some indicate massive bear markets and other times where we have price declines that last only couple months.
I think the later is more likely where we have a correction for some weeks to couple months before having a GOLDEN CROSS and continuing back into a BULL market.
***2nd is the BEARISH DIVERGENCE forming in the charts.
This is when Price action shows HIGHER LOWS but Indicators show LOWER LOWS.
AND that 2 Indicators are showing such signs.
It normally leads PRICE ACTION to mirrow the indicators by also forming a Lower Low.
Thus having the 0.618 FIB level be that LOWER LOW Target.
ALso i would love to see in the Indicators:
1. RSI Move back ABOVE Red Horizontal Line
2. MACD Move back ABOVE 0 level
If we dont, we can see further price DECLINES adding to the risk of seeing that 0.618 FIB Level.
This 2 Bearish Signs merit CAUTION in BTC, i would not take positions here but wait out to see how things play out.
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on BTC in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy
We've attempted since April 2023 to try and break ABOVE the Resistance Trend Line
From End of June to Mid July, we attempted to Re-test the Resistance trendline for couple weeks BUT Failed with a REJECTION.
Which brought Price Action to test SUPPORT on the 21 EMA (Purple line), before finally breaking through the 21 EMA and 50 SMA (Green line) with an ENGULFING BEARISH CANDLE.
Bringing us below the 0.786 FIB level.
But pay attention to the Volume, we initially have a spike in VOLUME during the break down but there has not yet been signs of follow through so wtch closely.
2 Major patterns have shown up that makes me CAUTIOUS with BTC atleast for the short term.
If they play out could bring BTC to test the 0.618 FIB level @ $24200
***1st is the fast approaching DEATH CROSS, where the 21 EMA crosses below the 50 SMA.
If you look left ( on your own time) as i have not zoomed out on the chart.
There are MIXED scenarios where some indicate massive bear markets and other times where we have price declines that last only couple months.
I think the later is more likely where we have a correction for some weeks to couple months before having a GOLDEN CROSS and continuing back into a BULL market.
***2nd is the BEARISH DIVERGENCE forming in the charts.
This is when Price action shows HIGHER LOWS but Indicators show LOWER LOWS.
AND that 2 Indicators are showing such signs.
It normally leads PRICE ACTION to mirrow the indicators by also forming a Lower Low.
Thus having the 0.618 FIB level be that LOWER LOW Target.
ALso i would love to see in the Indicators:
1. RSI Move back ABOVE Red Horizontal Line
2. MACD Move back ABOVE 0 level
If we dont, we can see further price DECLINES adding to the risk of seeing that 0.618 FIB Level.
This 2 Bearish Signs merit CAUTION in BTC, i would not take positions here but wait out to see how things play out.
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on BTC in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy
Note
We've given back MAJORITY of our gains from the Grayscale news pump. Overall its a great great win for crypto. BUT it was a pump on hopes/ dreams. Its still not an actual ETF launch, which would have brought in massive liquidity that would have sustained this move. Its going to take time.
My views are still intact. Especially if we maintain this enormous WICK, this warrants us to maintain EXTREME CAUTION.
The ENGULFING bear candle, along with this IS NOT A PRETTY LOOK.
I would be getting ready to take a short position once we see signs of a break of a SUPPORT line and Confirmation.
Note
We are now BELOW the support line. Could be a potential short play. The Bearish Divergence is now in play, watch for confirmation.
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